When an organization with a simple structure increases its sales revenue and volume of outputs,it is most likely to develop a ________ structure.
A) divisional
B) functional
C) product-market
D) geographic

Question

Quizplus · Accepted Answer

A new firm with a simple structure typically increases its sales revenue and volume of outputs over time. It may also engage in some vertical integration to secure sources of supply (backward integration) as well as channels of distribution (forward integration). The simple-structure firm then implements a functional structure to concentrate efforts on both increasing efficiency and enhancing its operations and products.

When an Organization with a Simple Structure Increases Its Sales