The Simple Structure Usually Depends on _____ to Coordinate Work

question 21

Multiple Choice

The simple structure usually depends on _____ to coordinate work activities, so it is very difficult to operate as the company grows and becomes more complex.

• A)the owner's direct supervision
• B)standardization through formal instructions
• C)formal training (standardizing skills)
• D)standardization of product or service outputs
• E)decentralization

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Definitions:

IRR

The interest rate that results in a net present value of zero for all cash flows associated with a specific project.

Break-Even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss.

Sales

The total income received from selling goods or services over a specific period of time.

DOL

Degree of Operating Leverage, a ratio that measures how sensitive a company’s operating income is to a change in its sales, indicating the volatility of earnings.