Question 1

Which of the following boundaries exist between the functional areas of an organization?

Accepted Answer

A)   vertical boundaries
B)   horizontal boundaries
C)   external boundaries
D)   all of theseE) A) and C)
F) B) and D)

Question 2

Modular companies can achieve rapid growth because they don't require large investments in fixed assets.

Accepted Answer

A) True 
 B)False

Question 3

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure?

Accepted Answer

A)   divisional
B)   matrix
C)   holding company
D)   functionalE) C) and D)
F) A) and C)

Question 4

An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work.

Accepted Answer

A) True 
 B)False

Question 5

In a simple structure where the owner-manager makes most of the important decisions, extensive rules and regulations are used to maintain order.

Accepted Answer

A) True 
 B)False

Question 6

Discuss how changes in today's workforce and the business environment have contributed to growth in the use of boundaryless organizational designs.

Accepted Answer

There are primarily four types of bounda...

Question 7

Brinker International found that the diverse markets served by their bakeries and restaurants made it difficult focus on the unique aspects faced by each chain and consequently changed from a

Accepted Answer

A)   simple structure to a functional structure
B)   divisional structure to a matrix structure
C)   functional structure to a divisional structure
D)   virtual structure to an ambidextrous structureE) B) and D)
F) None of the above

Question 8

All of the following are advantages of a strategic business unit (SBU)  type of organizational structure except

Accepted Answer

A)   divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies.
B)   divisional executives can respond quickly to market changes and opportunities.
C)   planning and control by the corporate office is more manageable.
D)   the corporate office is more removed from the individual divisions.E) None of the above
F) All of the above

Question 9

Describe the attributes of a matrix organizational structure. What are the disadvantages associated with using the matrix organizational form?

Accepted Answer

The Matrix structure is a combination of...

Question 10

The boundaries between levels in an organization's hierarchy are known as

Accepted Answer

A)   vertical boundaries.
B)   horizontal boundaries.
C)   external boundaries.
D)   geographic boundaries.E) A) and D)
F) B) and C)

Question 11

One of the risks of outsourcing is a loss of cross-functional skills.

Accepted Answer

A) True 
 B)False

Question 12

The strategic business unit (SBU) structure is also referred to as the conglomerate structure.

Accepted Answer

A) True 
 B)False

Question 13

Describe the attributes of a functional organizational structure.

Accepted Answer

The simple organizational structure is t...

Question 14

Functional structures are usually found in organizations where there is

Accepted Answer

A)   high volume production.
B)   unrelated product lines or service offerings.
C)   very little vertical integration.
D)   a strong need to decentralize decision making.E) A) and B)
F) None of the above

Question 15

Which of the following is considered to be an advantage of a matrix structure?

Accepted Answer

A)   the layering of matrices
B)   increased clarity in reporting relationships
C)   increased responsiveness to the market
D)   fewer power struggles and reduced conflictE) All of the above
F) None of the above

Question 16

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is

Accepted Answer

A)   worldwide functional.
B)   worldwide product division.
C)   worldwide matrix.
D)   international division.E) A) and C)
F) None of the above

Question 17

Which of the following is not a disadvantage of virtual structures?

Accepted Answer

A)   difficulty in individual and organizational knowledge sharing.
B)   potential loss of operational control among partners.
C)   loss of strategic control over emerging technology.
D)   difficulty in determining where one company ends and another begins due to close interdependencies.E) A) and D)
F) A) and B)

Question 18

The virtual type of organization is a network of independent companies linked together to share skills, costs, and access to one another's markets.

Accepted Answer

A) True 
 B)False

Question 19

An organization that has both adaptability and alignment is known as

Accepted Answer

A)   a matrix organization
B)   an ambidextrous organization
C)   a virtual organization
D)   a boundaryless organizationE) None of the above
F) B) and D)

Question 20

Which of the following is not a strategic risk of outsourcing?

Accepted Answer

A)   loss of critical skills
B)   loss of cross-functional skills
C)   loss of control over a supplier
D)   loss of non-vital functionsE) C) and D)
F) A) and D)

Exam 9: Strategic Control and Corporate Governance

Which of the following is not a strategic risk of outsourcing?

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Describe the attributes of a matrix organizational structure. What are the disadvantages associated with using the matrix organizational form?

Correct AnswerverifiedThe Matrix structure is a combination of...View AnswerShow Answer

Which of the following is not a disadvantage of virtual structures?

Correct AnswerverifiedShow Answer

Functional structures are usually found in organizations where there is

Correct AnswerverifiedShow Answer

Describe the attributes of a functional organizational structure.

Correct AnswerverifiedThe simple organizational structure is t...View AnswerShow Answer

Discuss how changes in today's workforce and the business environment have contributed to growth in the use of boundaryless organizational designs.

Correct AnswerverifiedThere are primarily four types of bounda...View AnswerShow Answer

An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work.

Correct AnswerverifiedShow Answer

Brinker International found that the diverse markets served by their bakeries and restaurants made it difficult focus on the unique aspects faced by each chain and consequently changed from a

Correct AnswerverifiedShow Answer

The virtual type of organization is a network of independent companies linked together to share skills, costs, and access to one another's markets.

Correct AnswerverifiedShow Answer

In a simple structure where the owner-manager makes most of the important decisions, extensive rules and regulations are used to maintain order.

Correct AnswerverifiedShow Answer

The boundaries between levels in an organization's hierarchy are known as

Correct AnswerverifiedShow Answer

The strategic business unit (SBU) structure is also referred to as the conglomerate structure.

Correct AnswerverifiedShow Answer

An organization that has both adaptability and alignment is known as

Correct AnswerverifiedShow Answer

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure?

Correct AnswerverifiedShow Answer

Which of the following is considered to be an advantage of a matrix structure?

Correct AnswerverifiedShow Answer

One of the risks of outsourcing is a loss of cross-functional skills.

Correct AnswerverifiedShow Answer

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is

Correct AnswerverifiedShow Answer

Which of the following boundaries exist between the functional areas of an organization?

Correct AnswerverifiedShow Answer

All of the following are advantages of a strategic business unit (SBU) type of organizational structure except

Correct AnswerverifiedShow Answer

Modular companies can achieve rapid growth because they don't require large investments in fixed assets.

Correct AnswerverifiedShow Answer

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The Matrix structure is a combination of...
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The simple organizational structure is t...
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There are primarily four types of bounda...
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