GBA ACTUAL EXAM QUESTIONS AND
COMPLETE STUDY GUIDE 2026
▶ departmental, unitary, or u-forms. Answer: 3 other names for functional
structure
▶ primary advantage of functional structure. Answer: greater task
specialization, which promotes learning, enables the realization of scale
economies, and offers productivity advantages not otherwise available
▶ multidivisional structure. Answer: a decentralized structure consisting of
a set of operating divisions organized along business, product, customer
group, or geographic lines, and a central corporate headquarters that
allocates resources, provides support functions, and monitors divisional
activities
▶ divisional or m-forms. Answer: 2 other names for multidivisional
structure
▶ matrix structure. Answer: combination structure that overlays one type
of structure onto another type with multiple reporting relationships, used to
foster cross-unit collaboration
▶ composite and combination. Answer: 2 other names for matrix
structures
▶ decentralize and centralize. Answer: 2 parts to authority delegation
▶ top executives. Answer: retain authority for most strategic and operating
decisions
▶ ultimate goal of decentralized decision making. Answer: to put authority
in the hands of those persons closest to and most knowledgeable about the
situation
, ▶ highly decentralized organization. Answer: decision making authority is
pushed down to the lowest organizational level capable of making timely,
informed, competent decisions
▶ decentralizing decision making. Answer: important to give company
personnel some leeway in conducting operations must be tempered with
the need to maintain adequate control and cross unit coordination
▶ key factor in achieving good internal cross unit coordination. Answer:
getting managers of execution critical activities to live up to their
commitments to coordinate closely with sister organizational unit is a
▶ network structure. Answer: a configuration composed of a number of
independent organizations engaged in some common undertaking, with
one firm typically taking on a more central role
▶ company's strategic priorities. Answer: must drive how capital
allocations are made and the size of each unit's operating budgets
▶ company's policies and procedures. Answer: provide a set of well-
honored routines for running the company and executing the strategy
▶ policies and procedures. Answer: provide top down guidance regarding
how things need to be done, help ensure consistency in how execution-
critical activities are performed, and promote creation of a work climate that
facilitates good strategy execution
▶ middle ground approach. Answer: Prescribe enough policies to give
organization members clear direction and to place reasonable boundaries
on their actions; then empower them to act within these boundaries in
pursuit of company goals.
▶ business process reengineering. Answer: involves radically redesigning
and streamlining how an activity is performed, with the intent of achieving
quantum improvements in performance
▶ total quality management. Answer: entails creating a total quality
culture, involving managers and employees at all levels, bent on
continuously improving the performance of every value chain activity
COMPLETE STUDY GUIDE 2026
▶ departmental, unitary, or u-forms. Answer: 3 other names for functional
structure
▶ primary advantage of functional structure. Answer: greater task
specialization, which promotes learning, enables the realization of scale
economies, and offers productivity advantages not otherwise available
▶ multidivisional structure. Answer: a decentralized structure consisting of
a set of operating divisions organized along business, product, customer
group, or geographic lines, and a central corporate headquarters that
allocates resources, provides support functions, and monitors divisional
activities
▶ divisional or m-forms. Answer: 2 other names for multidivisional
structure
▶ matrix structure. Answer: combination structure that overlays one type
of structure onto another type with multiple reporting relationships, used to
foster cross-unit collaboration
▶ composite and combination. Answer: 2 other names for matrix
structures
▶ decentralize and centralize. Answer: 2 parts to authority delegation
▶ top executives. Answer: retain authority for most strategic and operating
decisions
▶ ultimate goal of decentralized decision making. Answer: to put authority
in the hands of those persons closest to and most knowledgeable about the
situation
, ▶ highly decentralized organization. Answer: decision making authority is
pushed down to the lowest organizational level capable of making timely,
informed, competent decisions
▶ decentralizing decision making. Answer: important to give company
personnel some leeway in conducting operations must be tempered with
the need to maintain adequate control and cross unit coordination
▶ key factor in achieving good internal cross unit coordination. Answer:
getting managers of execution critical activities to live up to their
commitments to coordinate closely with sister organizational unit is a
▶ network structure. Answer: a configuration composed of a number of
independent organizations engaged in some common undertaking, with
one firm typically taking on a more central role
▶ company's strategic priorities. Answer: must drive how capital
allocations are made and the size of each unit's operating budgets
▶ company's policies and procedures. Answer: provide a set of well-
honored routines for running the company and executing the strategy
▶ policies and procedures. Answer: provide top down guidance regarding
how things need to be done, help ensure consistency in how execution-
critical activities are performed, and promote creation of a work climate that
facilitates good strategy execution
▶ middle ground approach. Answer: Prescribe enough policies to give
organization members clear direction and to place reasonable boundaries
on their actions; then empower them to act within these boundaries in
pursuit of company goals.
▶ business process reengineering. Answer: involves radically redesigning
and streamlining how an activity is performed, with the intent of achieving
quantum improvements in performance
▶ total quality management. Answer: entails creating a total quality
culture, involving managers and employees at all levels, bent on
continuously improving the performance of every value chain activity
