GBA PRACTICE EXAM QUESTIONS AND
DETAILED SOLUTIONS 2026
▶ company's organizational structure. Answer: should be matched to the
particular requirements of implementing the firm's strategy
▶ strategy executing advantages. Answer: lower costs, heightened
strategic focus, less internal bureaucracy, speedier decision making, and
better arsenal of organizational capabilities
▶ strategy executing advantage. Answer: wisely choosing which activities
to perform internally and which to outsource can provide a
▶ 3 execution benefits of strategy critical activities. Answer: company
improves its chances for outclassing rivals in the performance of strategy
critical activities and turning a competence into a distinctive competence,
streamlining of internal operations that flows from outsourcing often acts to
decrease internal bureaucracies, flatting the org structure, speed internal
decision making, and shorten the time, partnerships with outside vendors
can add to a company's arsenal of capabilities and contribute to better
strategy execution
▶ organizational strcuture. Answer: comprises the formal and informal
arrangement of tasks, responsibilities, lines of authority and reporting
relationships by which the firm is administered
▶ good organizational design. Answer: may contribute to the firm's ability
to create value for customers and realize a profit
▶ simple, functional, multidivisional, matrix. Answer: 4 types of
organizational structure
▶ simple structure. Answer: consists of a central executive who handles all
major decisions and oversees all operations with help of a small staff
, ▶ line and staff or flat. Answer: 2 other names for simple structures
▶ functional structure. Answer: organized into functional departments, with
departmental managers who report to the CEO and small corporate staff
▶ 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
DETAILED SOLUTIONS 2026
▶ company's organizational structure. Answer: should be matched to the
particular requirements of implementing the firm's strategy
▶ strategy executing advantages. Answer: lower costs, heightened
strategic focus, less internal bureaucracy, speedier decision making, and
better arsenal of organizational capabilities
▶ strategy executing advantage. Answer: wisely choosing which activities
to perform internally and which to outsource can provide a
▶ 3 execution benefits of strategy critical activities. Answer: company
improves its chances for outclassing rivals in the performance of strategy
critical activities and turning a competence into a distinctive competence,
streamlining of internal operations that flows from outsourcing often acts to
decrease internal bureaucracies, flatting the org structure, speed internal
decision making, and shorten the time, partnerships with outside vendors
can add to a company's arsenal of capabilities and contribute to better
strategy execution
▶ organizational strcuture. Answer: comprises the formal and informal
arrangement of tasks, responsibilities, lines of authority and reporting
relationships by which the firm is administered
▶ good organizational design. Answer: may contribute to the firm's ability
to create value for customers and realize a profit
▶ simple, functional, multidivisional, matrix. Answer: 4 types of
organizational structure
▶ simple structure. Answer: consists of a central executive who handles all
major decisions and oversees all operations with help of a small staff
, ▶ line and staff or flat. Answer: 2 other names for simple structures
▶ functional structure. Answer: organized into functional departments, with
departmental managers who report to the CEO and small corporate staff
▶ 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
