As new, small firms grow and mature, which structure are they likely to choose?
A) Simple
B) Geographic
C) Product
D) Matrix
E) Functional

Question

Quizplus · Accepted Answer

As new small firms grow and mature, they are likely to choose a functional structure. This is because a functional structure provides a clear hierarchy, allows for specialization, and encourages efficient decision making. It also allows for better coordination and communication among employees, which is essential for small firms looking to expand and develop a competitive advantage. Simple and geographic structures are too limited for rapidly growing firms, while product and matrix structures can be too complex and difficult to manage.

As New, Small Firms Grow and Mature, Which Structure Are