Question 1

Write a detailed note on a simple organizational structure.

Accepted Answer

The answer of Write a detailed note on a simple...

Question 2

Maintaining some clear differences between divisions is an important component of proper multidivisional structure.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements about the typical organizational form of businesses owned by Overseas Chinese is false?

Accepted Answer

A)  The complex structure works well for Overseas Chinese businesses due to the nature of the decisions that are required. 
B)  The head of the organization is typically the family patriarch who sits at the center of the organization. 
C)  Some organizations owned by Overseas Chinese are quite large, in contrast to entrepreneurial organizations. 
D)  Individuals in the organization typically look for direction from the organization's head.

Question 4

From Senge's perspective, success comes from an organic organization that fully engages individuals and permits experimentation.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about organizational structure is false?

Accepted Answer

A)  A firm's structure changes to support expansion strategies in order to attain scale economies with multiple locations. 
B)  The strategy-structure relationship is a one-way street. 
C)  Strategy is central to choosing the appropriate organizational structure for a firm. 
D)  Firm structure needs to fit with the firm's degree of internationalization to be successful.

Question 6

What is the drawback of a divisional structure?

Accepted Answer

A)  It duplicates many functional skills. 
B)  The close monitoring of items such as expenses may no longer occur. 
C)  It is difficult to achieve scale economies in activities such as marketing and finance. 
D)  It can often hinder growth because the founder is limited in his/her ability to address numerous firm details.

Question 7

A(n) _____ structure is one that is flexible, innovative, and able to adapt to its environment.

Accepted Answer

A)  mechanistic 
B)  organic 
C)  bureaucratic 
D)  individualistic

Question 8

An SBU is operated essentially like a separate business within the corporation.

Accepted Answer

A) True 
 B)False

Question 9

_____ rests on the assumption that over time businesses create and build up processes that no longer establish value for the firm and may even hinder its business.

Accepted Answer

A)  Process management 
B)  Six Sigma 
C)  Reengineering 
D)  Total quality management

Question 10

Informal organizations are the unofficial connections that exist among individuals in a business.

Accepted Answer

A) True 
 B)False

Question 11

A _____ is a business division within a larger firm that is charged with managing a particular category of product or service.

Accepted Answer

A)  spin-off 
B)  matrix structure 
C)  strategic business unit 
D)  functional structure

Question 12

Agency theory was developed principally by researchers in economics and finance to highlight the fact that individual employees will often act in the interest of their employer rather than in their own self-interest.

Accepted Answer

A) True 
 B)False

Question 13

A firm's structure is the official manner in which the various tasks and parts of the business are to interact, coordinate, and report with each other, and at what levels decisions are made.

Accepted Answer

A) True 
 B)False

Question 14

As firms internationalize, they typically prefer spending the money to open in a foreign location initially rather than to export goods.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements about M-division firms is true?

Accepted Answer

A)  The early M-division firms first emerged in the late 1900s. 
B)  The M-division structure is closely associated with Alfred Chandler. 
C)  In an M-division structure, the firm is divided into a few functional areas. 
D)  Using their size, M-division firms were able to cut costs.

Question 16

The classic problem for an entrepreneur is when and how to move away from a simple organizational form to a more complex structure.

Accepted Answer

A) True 
 B)False

Question 17

Process management rests on the assumption that over time businesses create and build up processes that no longer establish value for the firm and may even hinder its business.

Accepted Answer

A) True 
 B)False

Exam 13: The Structure of the International Firm

Write a detailed note on a simple organizational structure.

Maintaining some clear differences between divisions is an important component of proper multidivisional structure.

Which of the following statements about the typical organizational form of businesses owned by Overseas Chinese is false?

From Senge's perspective, success comes from an organic organization that fully engages individuals and permits experimentation.

Which of the following statements about organizational structure is false?

What is the drawback of a divisional structure?

A(n) _____ structure is one that is flexible, innovative, and able to adapt to its environment.

An SBU is operated essentially like a separate business within the corporation.

_____ rests on the assumption that over time businesses create and build up processes that no longer establish value for the firm and may even hinder its business.

Informal organizations are the unofficial connections that exist among individuals in a business.

A _____ is a business division within a larger firm that is charged with managing a particular category of product or service.

Agency theory was developed principally by researchers in economics and finance to highlight the fact that individual employees will often act in the interest of their employer rather than in their own self-interest.

A firm's structure is the official manner in which the various tasks and parts of the business are to interact, coordinate, and report with each other, and at what levels decisions are made.

As firms internationalize, they typically prefer spending the money to open in a foreign location initially rather than to export goods.

Which of the following statements about M-division firms is true?

The classic problem for an entrepreneur is when and how to move away from a simple organizational form to a more complex structure.

Process management rests on the assumption that over time businesses create and build up processes that no longer establish value for the firm and may even hinder its business.