Basic Business Structures

Which of the following is NOT a disadvantage of a simple structure?

• It only works well in small organizations.

• It allows too much power at the top level.

• It has few policies and rules to guide operations.

• It usually costs a lot of money.

Authority is shared between two supervisors in which of the following types of business structures?

• Matrix organization

• Divisional structure

• Employee-based structure

• Customer-based structure

Which of the following types of business structures consists entirely of work groups and teams which perform an organization’s work?

• Productivity structure

• Divisional structure

• Employee-based structure

• Team-based structure

Which of the following is NOT one of the considerations when selecting a business structure?

• Size of the business or organization

• Worker skills and responsibilities

• Business purpose

• Customers' demographics

Which of the following is an advantage of a divisional structure?

• It often increases efficiency.

• It frees headquarter staff from being concerned with everyday activities.

• It helps reduce costs.

• It can create duplication of activities and resources.