Question 1

All of the following are either advantages or disadvantages of the functional structure except
no single function is responsible for overall organizational performance.
employees have clearly defined career paths.
increases in accountability.
focusing attention on the key activities that must be performed.
conflicts may arise among the functional areas.

Accepted Answer

The answer of All of the following are either advantages...

Question 2

An organization that customarily uses teams of individuals from several departments to work on special projects is using a(n) ________ organizational structure.
decentralized
matrix
international
line and staff
conglomerate

Accepted Answer

The answer of An organization that customarily uses teams of...

Question 3

At PepsiCo, each of the company's three major beverage brands (Pepsi, Gatorade, and Tropicana) were formerly in separate departments. They competed for the same resources and there was very little coordination and sharing of information between them. This illustrates one of the problems with the ______ structure.
functional
international
matrix
conglomerate
divisional

Accepted Answer

The answer of At PepsiCo, each of the company's three...

Question 4

Which of the following is the best explanation of a matrix structure?
Teams are formed in which employees report to two or more managers.
A matrix structure is based on the geographical area of the world.
A matrix occurs when one firm purchases another and combines the staff activities.
A matrix occurs when the organization is restructuring from a tall to a flat organization.
A matrix divides the organization into divisions, each of which operates as a semi-autonomous unit.

Accepted Answer

The answer of Which of the following is the best...

Question 5

Which of the following is not an advantage of the divisional structure?
Activities may be duplicated across divisions.
Training for top management is encouraged.
Accountability is increased.
Developing expertise in the various divisions.
Change and expansion are facilitated.

Accepted Answer

The answer of Which of the following is not an...

Question 6

In which structure will an individual report to two or more managers?
Divisional
Conglomerate
Duopoly
Matrix
Functional

Accepted Answer

The answer of In which structure will an individual report...

Question 7

Which of the following is correct with regard to divisional structures?
Unhealthy competition may arise between the divisions.
The different divisions all pursue the same corporate identity.
Different divisions do not share certain corporate-level resources like market research data.
If a lot of control is delegated to divisional managers, corporate managers have a better understanding of daily operations in the divisions.
There is little duplication of effort because the various divisions must work together to achieve overall corporate objectives.

Accepted Answer

The answer of Which of the following is correct with...

Question 8

What is the difference between line managers and staff managers?
Staff managers have no authority over their subordinates, while line managers do.
Line managers usually have more formal education than staff managers.
Line managers are more important.
In a manufacturing firm, line managers are involved in areas like marketing and production, while staff managers work in areas like marketing research, personnel, and legal.
Staff managers have more authority than line managers.

Accepted Answer

The answer of What is the difference between line managers...

Question 9

Michael is analyzing the structure of his new employer. It is highly flexible and can readily adapt to changing circumstances. It also is heavily dependent upon committee and team authority. The firm is probably using the ________ structure.
matrix
functional
conglomerate
divisional
international

Accepted Answer

The answer of Michael is analyzing the structure of his...

Question 10

Which of the following is an advantage of a functional structure?
Functional areas get approval from top management for a variety of decisions.
Expertise develops within each function.
No single function is responsible for overall company performance.
Conflicts between functional areas may arise.
None of these

Accepted Answer

The answer of Which of the following is an advantage...

Question 11

Which organizational structure relies on product departmentalization?
Functional
Matrix
Divisional
Project
International

Accepted Answer

The answer of Which organizational structure relies on product departmentalization?
Functional
Matrix
Divisional
Project
International...

Question 12

In a law firm, which of the following would be line positions?
Market researchers
Lawyers
Accountants
Human resource people
None of these; they would all be staff positions.

Accepted Answer

The answer of In a law firm, which of the...

Question 13

Scott has reviewed the organizational structure of his company and found that there is a lot of specialization within each area, employees seem to have clearly defined career paths, and that there is little duplication of activities. He is most likely working in a company with a(n) ________ structure.
international
divisional
functional
conglomerate
matrix

Accepted Answer

The answer of Scott has reviewed the organizational structure of...

Question 14

Employees with specific areas of expertise like accounting, law, and human resources, are usually given _________ authority, while managers of areas like production, finance, and marketing are usually given ________ authority.
line; staff
staff; line
functional; staff
team; staff
none of these

Accepted Answer

The answer of Employees with specific areas of expertise like...

Question 15

As companies get larger and more complex, they are likely to move away from the __________ structure.
matrix
international
functional
divisional
conglomerate

Accepted Answer

The answer of As companies get larger and more complex,...

Question 16

Gerry owns a company that employs 78 people. His company would most likely have a ________ structure.
functional
international
matrix
conglomerate
divisional

Accepted Answer

The answer of Gerry owns a company that employs 78...

Question 17

In a firm that does marketing research for other firms, which of the following would be line positions?
Market researchers
Accountants
Legal experts
Human resource people
It is not possible to tell.

Accepted Answer

The answer of In a firm that does marketing research...

Question 18

The firm is making a sales proposal which must include suggested computer hardware, software, an overall systems design, and estimated costs. A project manager is assigned who assembles a group of company specialists from various departments to prepare the proposal to the customer. Which organizational structure is used in this situation?
Strategic business unit structure
Product departmentalization
Geographic departmentalization
Matrix structure
Centralized structure

Accepted Answer

The answer of The firm is making a sales proposal...

Question 19

What is an advantage of the functional organization structure?
The members of the organization speak a foreign language.
The organization is staffed with people who have expert knowledge about the product.
Coordinating highly specialized functions is easy.
Members of the organization report to two or more managers.
The functions are performed by experts in their field.

Accepted Answer

The answer of What is an advantage of the functional...

Question 20

Geoff is a legal expert for Marks Inc. His special expertise involves counseling and advising other managers. This illustrates
functional authority.
counseling authority.
line authority.
human resource authority.
staff authority.

Accepted Answer

The answer of Geoff is a legal expert for Marks...

Quiz 7: Organizing the Business Enterprise

An organization that customarily uses teams of individuals from several departments to work on special projects is using a(n) ________ organizational structure. decentralized matrix international line and staff conglomerate

Which of the following is not an advantage of the divisional structure? Activities may be duplicated across divisions. Training for top management is encouraged. Accountability is increased. Developing expertise in the various divisions. Change and expansion are facilitated.

In which structure will an individual report to two or more managers? Divisional Conglomerate Duopoly Matrix Functional

Michael is analyzing the structure of his new employer. It is highly flexible and can readily adapt to changing circumstances. It also is heavily dependent upon committee and team authority. The firm is probably using the ________ structure. matrix functional conglomerate divisional international

Which organizational structure relies on product departmentalization? Functional Matrix Divisional Project International

In a law firm, which of the following would be line positions? Market researchers Lawyers Accountants Human resource people None of these; they would all be staff positions.

Employees with specific areas of expertise like accounting, law, and human resources, are usually given _ authority, while managers of areas like production, finance, and marketing are usually given authority. line; staff staff; line functional; staff team; staff none of these

As companies get larger and more complex, they are likely to move away from the __________ structure. matrix international functional divisional conglomerate

Gerry owns a company that employs 78 people. His company would most likely have a ________ structure. functional international matrix conglomerate divisional

In a firm that does marketing research for other firms, which of the following would be line positions? Market researchers Accountants Legal experts Human resource people It is not possible to tell.

Geoff is a legal expert for Marks Inc. His special expertise involves counseling and advising other managers. This illustrates functional authority. counseling authority. line authority. human resource authority. staff authority.