Which of the Following Statements Is False

question 23

Multiple Choice

Which of the following statements is false?

• A) Cost-reduction synergies are hard to predict and achieve.
• B) Because the CEOs of small firms receive information so quickly, small firms are often able to react in timely way to changes in the economic environment.
• C) Synergies usually fall into two categories: cost reductions and revenue enhancements.
• D) There may also be costs associated with size.

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Definitions:

Departmentalization

The method by which an organization divides its operations into separate units or departments based on function, product, geographic location, or customer base.

Matrix Structure

An organizational structure that combines two or more types of departmentalization, typically project and functional, to facilitate the horizontal flow of information.

Functional Structure

An organizational design where the company is divided into departments based on function or specialization, such as marketing, finance, and human resources.

Organic Structure

An organizational configuration that is flexible, decentralized, and has low levels of formalization, allowing it to adapt quickly to changes.