An Important Implication of High Differentiation in an Organization Is

question 41

Multiple Choice

An important implication of high differentiation in an organization is that:

• A) controlling the environment will be difficult.
• B) the hierarchy of authority will be the most important integrating mechanism.
• C) coordination between departments will be difficult.
• D) the organization will be more organic.

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Definitions:

Acid-test Ratio

A stringent indicator of a company's liquidity, calculated by dividing liquid assets by current liabilities, to determine if it can meet short-term obligations.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.

Inventory Turnover

A ratio showing how many times a company sells and replaces its stock of goods within a certain period.

Common Stockholders' Equity

The portion of equity ownership in a corporation held by common stock investors, reflecting their claim on the company's assets.