Which Approach to Departmentalization Works Best in Small to Medium-Sized

question 28

Multiple Choice

Which approach to departmentalization works best in small to medium-sized companies operating in somewhat stable business environments without a great deal of change and uncertainty?

• A) Functional
• B) Span of control
• C) Divisional
• D) Matrix

---

Definitions:

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Cash Flows

The net amount of cash and cash equivalents being transferred into and out of a business.

Accrual Income

This refers to the income that is earned in a fiscal period but not received within the same period.

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, indicating the annualized rate of return that makes the net present value of all cash flows from the investment equal to zero.