BTF 1 - Chapter 3

Which of the following would be a typical advantage of a divisional structure?

• Clear responsibility for different products.

• Improved goal congruence.

• Improved control.

• Rapid decision making.

According to Henry Mintzberg, the six building blocks of an organization are integrated by means of co-ordinating mechanisms. These co-ordinating mechanisms include which of the following?

• Unity of command.

• Discipline.

• Direct supervision.

• Delegation.

Which of the following is NOT a characteristic of limited liability companies?

• Perpetual succession.

• Separate legal personality.

• The company’s obligation is unlimited.

• Regulation under the Companies Act.

Which of the following is characteristic of a limited company?

• A separate legal identity.

• The company is not allowed to issue securities to raise funds. 

• Financial statements are able to be kept privately.

• There is no perpetual succession.

In a simple, static and diverse environment, typical structure of an organization would be:

• Entrepreneurial structure.

• Divisional structure.

• Functional structure.

• Matrix structure.

Which of the following is correct about the centralization?

• Authority to make decisions is passed down to lower levels of hierarchy.

• Upper levels retain authority to make decisions.

• Increased delegation and autonomy at lower level of the business.

• Improve motivation of more junior managers.

A sole tradership is an organizational structure by which:

• Two or more people agree to conduct a business with a view of profit.

• The existence depends on the relationship among partners.

• The owners have limited liability for the unpaid debts.

• A single proprietor owns the business, taking all the risks, and enjoying all the rewards of the business.

Which of the following is NOT the disadvantages of entrepreneurial structure?

• Cannot expand beyond a certain size.

• Slow decision which have to pass along a line of authority.

• Cannot easily cope with diversification into new products.

• Lack of career structure for lower level employees.

Wide span of control is suitable when:

• Subordinates do similar tasks and can help each other.

• Subordinates do dissimilar tasks.

• There is more non-supervisory work in a manager’s workload.

• Time consuming problems that a manager might have to help subordinates with.

Standardization of outputs in coordinating mechanism refers to:

• Specification of results such as the setting of targets.

• Requiring workers to have particular skills or qualifications.

• Laying down standard operating procedures.

• Requiring workers to have particular skills or qualifications.