What Type of Organizational Structure Do Most Small Businesses Follow

question 91

Multiple Choice

What type of organizational structure do most small businesses follow?

• A) Divisional structure by product
• B) Functional structure
• C) Divisional structure by customer
• D) Process type structure
• E) Matrix structure

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Definitions:

Macaulay Duration

A measure of the weighted average time until a bond's cash flows are paid back, used to assess interest rate risk.

Yield To Maturity

The total return anticipated on a bond if held until it matures.

Interest-Rate Risk

The risk that an investment's value will change due to a change in the absolute level of interest rates, affecting debt securities inversely with respect to their prices and yields.

Unsystematic Risk

The portion of total risk that is specific to a single investment or to a small group of investments, also known as idiosyncratic or specific risk, which can be mitigated through diversification.