The most appropriate type of organizational structure to select is dependent upon the product or service the company provides.

Question

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Most organizations begin very small and either die or remain small. Those that survive and prosper embark on strategies designed to increase the overall scope of operations and enable them to enter new product-market domains. Such growth places additional pressure on executives to control and coordinate the firm's increasing size and diversity. The most appropriate type of structure depends on the nature and magnitude of growth.

The Most Appropriate Type of Organizational Structure to Select Is