MIIS OM11 The Significance of Organizational Structures

1. 1. Which organizational structure is most suitable for a small start-up milk tea business managed by only one person?

• A. Matrix Structure

• B. Divisional Structure

• C. Simple Structure

• D. Team Structure

2. In a functional structure, how are employees grouped?

• A. Based on age and experience

• B. Based on their personal interests

• C. Based on their assigned products

• D. Based on specialized tasks or functions

3. What is one disadvantage of the functional organizational structure?

• A. Employees lose motivation

• B. Communication between departments may be weak

• C. Tasks are too flexible

• D. There is no clear authority

4. 4. A student business project sells both food trays and custom gifts, and they form two separate teams for each. This is an example of what structure?

• A. Simple Structure

• B. Divisional Structure

• C. Matrix Structure

• D. Project Structure

4. 5. Which structure encourages group decision-making and collaboration with minimal hierarchy?

• A. Team Structure

• B. Functional Structure

• C. Divisional Structure

• D. Matrix Structure

4. 6. In a matrix structure, an employee may report to:

• A. Only the CEO

• B. One manager from a different business

• C. Two managers – one functional and one project-based

• D. No manager at all

4. 7. What is a benefit of using a project structure in business tasks?

• A. Long-term employment

• B. High flexibility and focus on goals

• C. Permanent departments

• D. Strict hierarchy

4. 8. Which modern structure is most likely used by online-based teams working from different locations?

• A. Matrix Structure

• B. Team Structure

• C. Boundary-less Structure

• D. Functional Structure

4. 9. What is the main limitation of a simple organizational structure?

• A. Too many managers

• B. Slow decision-making

• C. Not ideal for small businesses

• D. Becomes overwhelming as the business grows

4. 10. Why is understanding organizational structure important for ABM students?

• A. To memorize business terms

• B. To apply for jobs only

• C. To create efficient and manageable business plans

• D. To avoid group projects