Which of the Following Statements Is True Regarding a Bureaucracy

question 40

Multiple Choice

Which of the following statements is true regarding a bureaucracy?

• A) Bureaucracies need innovative and experienced decision makers at all levels in the organization.
• B) Bureaucracy is an ideal organizational design for those organizations that operate under highly uncertain conditions.
• C) Typically bureaucracies have wider spans of control.
• D) Bureaucracies can get by with less talented middle- and lower-level managers.
• E) Bureaucracies encourage employee empowerment.

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Definitions:

Diluted Earnings

Earnings per share calculated using the total number of shares that would be outstanding if all possible sources of conversion, such as convertible bonds and stock options, were exercised.

Basic Earnings

The net income available to common shareholders, divided by the weighted average number of common shares outstanding.

Weighted Average

A calculation that takes into account the proportional relevance of each component, rather than treating them equally.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.