The Major Source of Error in Analysts' Forecasts Is Their

question 30

Multiple Choice

The major source of error in analysts' forecasts is their misjudgment about the

• A) U.S. economy.
• B) firm itself.
• C) inflation rates.
• D) world economy.

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Definitions:

Departmentalization

The method by which an organization divides its operations into separate units or departments based on function, product, geographic location, or customer base.

Matrix Structure

An organizational structure that combines two or more types of departmentalization, typically project and functional, to facilitate the horizontal flow of information.

Functional Structure

An organizational design where the company is divided into departments based on function or specialization, such as marketing, finance, and human resources.

Organic Structure

An organizational configuration that is flexible, decentralized, and has low levels of formalization, allowing it to adapt quickly to changes.