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Refer to the Scenario Below to Answer the Following Questions

question 91

Multiple Choice

Refer to the scenario below to answer the following questions.
Restructuring at Prairie Farm Equipment (Scenario)
Jim Johnson is the CEO of Prairie Farm Equipment Corp, a major Canadian manufacturer. Prairie has been in business for more than 100 years and has been very profitable. Today, the company has a tall structure with formalized communication channels and rigid hierarchical relationships. All major decisions are made by Mr. Johnson. This arrangement has worked well until recently, when the company began to encounter some major global competition. Foreign companies have begun to export new, lower-priced products into the Canadian market. At the same time, foreign markets appear to be opening their doors to more Canadian products. A few days ago, one of the vice-presidents presented some exciting news about a major market opportunity overseas. Several managers were now working on an international expansion proposal to be presented at the next board meeting. As the company's strategy was beginning to change, Mr. Johnson realized that its structure would also need to change. But change how? The company was very large and used routine technology to produce its products. What should he do?
-The current organizational design at Prairie is best described as __________.

Definitions:

Deferred Tax Liabilities

Future tax obligations that arise due to temporary differences between the book value and tax value of assets and liabilities.

Deferred Tax Assets

Financial items on the balance sheet representing taxes paid or carried forward but not yet realized on the income statement.

Permanent Difference

A discrepancy between the tax treatment and accounting treatment of transactions and events that will not reverse in the future.

IFRS Rules

A specific set of standards and guidelines established under the IFRS framework for financial reporting and accounting.