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Scenario: Splash Hair Care Inc

question 3

Multiple Choice

Scenario: Splash Hair Care Inc.Splash Hair Care Inc.is growing very fast in both sales and number of employees.It manufactures and sells hair products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries.So far the company followed a simple structure.However, with fast-paced growth, it has become a necessity that the company explores other organizational structures.John, a long-time employee at Splash Hair Care, has collected information on how some of their competitors have organized their companies.Streaks Inc.groups their employees by their different areas of expertise such as Marketing, Finance, Human Resources and Operations.Pure Oil, primarily in the United States, groups their activities as northeast division, southeast division, northwest division, southwest division, and central division.Curlz Inc.has organized their employees according to the accounts they serve such as Large Company contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales.Finally, Color Lite International has grouped their business units around popular colors such as Red Division, Silver Division, Rainbow Division, Black and Brown Division, and Shades of Blonde Division.Which of the following describes Color Lite International's organizational structure?

Definitions:

Net Sales

The net sales of a company, which are calculated by deducting returns, allowances for damaged or missing items, and discounts from total sales.

Credit Sale

A transaction where goods or services are provided to a customer with an agreement to pay at a later date.

Gross Profit

The difference between revenue and the cost of goods sold, representing the profit a company makes after deducting the costs associated with making and selling its products or services.

Sales Discounts

Reductions granted on the selling price of goods or services to encourage prompt payment by the customer.