Which Form of Departmentalisation Tends to Have a Very Flat

question 48

Multiple Choice

Which form of departmentalisation tends to have a very flat hierarchy,little formalisation and organises employees around work processes?

• A) Divisional structure
• B) Functional structure
• C) Team-based structure
• D) Matrix structure

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Definitions:

Intra-entity Purchases

Transactions involving the exchange of goods or services between entities within the same parent company, often leading to consolidation adjustments.

Gross Profit Rate

The ratio of gross profit to net sales, indicating the efficiency of a company in controlling its production or purchase costs.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies.

Intra-entity Gross Profit

The profit recognized on transactions conducted within the same entity, not realized in consolidated financial statements until the transactions affect an external party.