Question 1

Which statement about line departments is TRUE?

Accepted Answer

A)  They include those with special counseling and advising expertise. 
B)  They include those directly linked to the sales of products. 
C)  They include staff members who provide services to management. 
D)  They have little effect on the production of goods. 
E)  Customer preference has little effect on them.

Question 2

American Wood Products has three divisions.The Lumberjack division is involved in harvesting trees and transporting them to lumber mills.The Milling division transforms cut timber into dimensional lumber for building.The Paper Products division makes paper and cardboard from the remnants of the milling process.What type of departmentalization is this an example of?

Accepted Answer

A)  functional departmentalization 
B)  process departmentalization 
C)  customer departmentalization 
D)  geographic departmentalization 
E)  brand departmentalization

Question 3

At McDonald's,most advertising is handled at the corporate level,and any local advertising must be approved by a regional manager.What kind of organization is McDonald's demonstrating?

Accepted Answer

A)  authoritarian 
B)  committee 
C)  decentralized 
D)  centralized 
E)  team

Exam 6: Organizing the Business

Which statement about line departments is TRUE?

At McDonald's,most advertising is handled at the corporate level,and any local advertising must be approved by a regional manager.What kind of organization is McDonald's demonstrating?