Which of the Following Statements Is True About the Simple

question 36

Multiple Choice

Which of the following statements is true about the simple structure?

• A) It is very expensive to operate.
• B) It is characterized by a high degree of departmentalization.
• C) It becomes increasingly inadequate as an organization grows.
• D) It is rigid.
• E) It is characterized by a narrow span of control.

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Definitions:

Inventory Loan

A loan that is secured by the inventory of the borrower, providing companies with the capital needed to purchase products for sale.

Debenture

Unsecured debt, usually with a maturity of ten years or more.

Line Of Credit

An arrangement between a financial institution and a customer that establishes a maximum loan balance that the borrower can access.

Carrying Costs

The cumulative expenses associated with maintaining inventory, which encompass storage fees, insurance premiums, taxes, the decrease in value over time, and the costs related to missed opportunities.