The Simple Structure Is Characterized by a High Degree of Departmentalization

question 21

True/False

The simple structure is characterized by a high degree of departmentalization and narrow span of control.

---

Definitions:

Beta

A measure of a security’s volatility in comparison to the overall market, indicating its relative risk.

Total Abnormal Return

The difference in stock or portfolio returns relative to a benchmark or expected return, often analyzed to assess the impact of events or news on stock performance.

Bonds

Debt securities issued by corporations or governments to raise funds, promising to pay back the face value on maturity along with periodic interest payments.

Treynor's Measure

A performance metric for determining how well a portfolio has performed in excess of a risk-free rate, adjusted for the portfolio's risk.