In the Lawrence and Lorsch Study,the Most Successful Container Manufacturing

question 162

Multiple Choice

In the Lawrence and Lorsch study,the most successful container manufacturing firms adopted mechanistic structures because

• A)their managers felt that this was the most sensible way to deal with an uncertain environment and high differentiation.
• B)organic structures were too costly to implement.
• C)they faced a fairly certain environment and were fairly undifferentiated.
• D)decision-making power was already decentralized to be where the appropriate knowledge existed.
• E)they utilized non-routine and intensive technologies.

---

Definitions:

Depreciation Expense

Distributing the expense of a physical asset throughout its lifespan.

Accrue Interest Expense

The recording of interest expense that has been incurred but not yet paid, typically on borrowed funds.

Financial Statements

These are formal records that outline the financial activities and condition of a business, entity, or individual.

Net Income

The final profit figure for a company, calculated by subtracting all expenditures and taxes from revenues.