MBA 705 - Final Exam comprehensive questions | FREQUENTLY MOST
TESTED QUESTIONS AND VERIFIED SOLUTIONS
Brand Manager: - (ANSWER)The project manager in P&G's version of the matrix structure.
Centralization: - (ANSWER)An organizational decision-making approach with most strategic and
operating decisions made by managers at the top of the organization structure (at corporate
headquarters).
Corporate Restructuring: - (ANSWER)A change in the organization's structure to improve efficiency and
firm performance, including such activities as realigning divisions in the firm, reducing the amount of
cash under the discretion of senior executives, and acquiring or divesting business units.
Decentralization: - (ANSWER)Decentralization: An organizational decision-making approach with most
strategic and operating decisions made by managers at the business unit level.
Downsizing: - (ANSWER)Downsizing: A means of organizational restructuring that eliminates part or all
of one or more hierarchical levels from the organization and pushes decision-making downward in the
organization.
Flat Organization: - (ANSWER)Flat Organization: An organization characterized by relatively few
hierarchical levels and a wide span of control.
Functional Structure: - (ANSWER)Functional Structure: A form of organizational structure whereby each
subunit of the organization engages in firm-wide activities related to a particular function, such as
marketing, HR, finance, or production.
Geographic Divisional Structure: - (ANSWER)Geographic Divisional Structure: A form of organizational
structure in which jobs and activities are grouped on the basis of geographic location—for example,
northeast region, Midwest region, and far west region.
,MBA 705 - Final Exam comprehensive questions | FREQUENTLY MOST
TESTED QUESTIONS AND VERIFIED SOLUTIONS
Horizontal Growth: - (ANSWER)An increase in the breadth of an organization's structure.
Horizontal Structure: - (ANSWER)An organizational structure with fewer hierarchies designed to improve
efficiency by reducing layers in the bureaucracy.
Matrix Structure: - (ANSWER)A form of organizational structure that combines the functional and
product divisional structures.
Multidivisional Structure: - (ANSWER)A structural form with two or more divisions based on products (a
product divisional structure) or geography (a geographic divisional structure); also called an M-form.
Organizational Structure: - (ANSWER)The formal means by which work is coordinated in an organization.
Product Divisional Structure: - (ANSWER)A form of organizational structure whereby the organization's
activities are divided into self-contained entities, each responsible for producing, distributing, and selling
its own products.
Strategy Implementation:2 Key Points - (ANSWER)}Consider the plan for implementation before
adopting a strategic alternative.
}The greater the strategic change, the more complex the implementation.
Profit Center: - (ANSWER)A well-defined organizational unit headed by a manager accountable for its
revenues and expenditures.
Simple Structure: - (ANSWER)An organizational form whereby each employee often performs multiple
tasks, and the owner/ manager is involved in all aspects of the business.
, MBA 705 - Final Exam comprehensive questions | FREQUENTLY MOST
TESTED QUESTIONS AND VERIFIED SOLUTIONS
Span of Control: - (ANSWER)The number of employees reporting directly to a given manager.
Tall Organization: - (ANSWER)n organization characterized by many hierarchical levels and a narrow
span of control.
Vertical Growth: - (ANSWER)An increase in the length of the organization's hierarchical chain of
command.
Corporate restructuring seeks to improve efficiency and performance through such actions as realigning
divisions in the firm, reducing the amount of cash under the discretion of senior executives, and
acquiring or divesting business units.
TrueFalse - (ANSWER)True
This is the definition of the term corporate restructuring
A flat organization is composed of many hierarchical levels and narrow spans of control.
TrueFalse - (ANSWER)False
A tall organization is composed of many hierarchical levels and narrow spans of control
Horizontal structures have fewer managerial levels than vertical structures
TrueFalse - (ANSWER)True
This is the definition of the term horizontal structures.
In general, a functional structure tends to be most appropriate for differentiated businesses.
TrueFalse - (ANSWER)False
In general, a functional structure tends to be most appropriate for defenders and low-cost businesses.
TESTED QUESTIONS AND VERIFIED SOLUTIONS
Brand Manager: - (ANSWER)The project manager in P&G's version of the matrix structure.
Centralization: - (ANSWER)An organizational decision-making approach with most strategic and
operating decisions made by managers at the top of the organization structure (at corporate
headquarters).
Corporate Restructuring: - (ANSWER)A change in the organization's structure to improve efficiency and
firm performance, including such activities as realigning divisions in the firm, reducing the amount of
cash under the discretion of senior executives, and acquiring or divesting business units.
Decentralization: - (ANSWER)Decentralization: An organizational decision-making approach with most
strategic and operating decisions made by managers at the business unit level.
Downsizing: - (ANSWER)Downsizing: A means of organizational restructuring that eliminates part or all
of one or more hierarchical levels from the organization and pushes decision-making downward in the
organization.
Flat Organization: - (ANSWER)Flat Organization: An organization characterized by relatively few
hierarchical levels and a wide span of control.
Functional Structure: - (ANSWER)Functional Structure: A form of organizational structure whereby each
subunit of the organization engages in firm-wide activities related to a particular function, such as
marketing, HR, finance, or production.
Geographic Divisional Structure: - (ANSWER)Geographic Divisional Structure: A form of organizational
structure in which jobs and activities are grouped on the basis of geographic location—for example,
northeast region, Midwest region, and far west region.
,MBA 705 - Final Exam comprehensive questions | FREQUENTLY MOST
TESTED QUESTIONS AND VERIFIED SOLUTIONS
Horizontal Growth: - (ANSWER)An increase in the breadth of an organization's structure.
Horizontal Structure: - (ANSWER)An organizational structure with fewer hierarchies designed to improve
efficiency by reducing layers in the bureaucracy.
Matrix Structure: - (ANSWER)A form of organizational structure that combines the functional and
product divisional structures.
Multidivisional Structure: - (ANSWER)A structural form with two or more divisions based on products (a
product divisional structure) or geography (a geographic divisional structure); also called an M-form.
Organizational Structure: - (ANSWER)The formal means by which work is coordinated in an organization.
Product Divisional Structure: - (ANSWER)A form of organizational structure whereby the organization's
activities are divided into self-contained entities, each responsible for producing, distributing, and selling
its own products.
Strategy Implementation:2 Key Points - (ANSWER)}Consider the plan for implementation before
adopting a strategic alternative.
}The greater the strategic change, the more complex the implementation.
Profit Center: - (ANSWER)A well-defined organizational unit headed by a manager accountable for its
revenues and expenditures.
Simple Structure: - (ANSWER)An organizational form whereby each employee often performs multiple
tasks, and the owner/ manager is involved in all aspects of the business.
, MBA 705 - Final Exam comprehensive questions | FREQUENTLY MOST
TESTED QUESTIONS AND VERIFIED SOLUTIONS
Span of Control: - (ANSWER)The number of employees reporting directly to a given manager.
Tall Organization: - (ANSWER)n organization characterized by many hierarchical levels and a narrow
span of control.
Vertical Growth: - (ANSWER)An increase in the length of the organization's hierarchical chain of
command.
Corporate restructuring seeks to improve efficiency and performance through such actions as realigning
divisions in the firm, reducing the amount of cash under the discretion of senior executives, and
acquiring or divesting business units.
TrueFalse - (ANSWER)True
This is the definition of the term corporate restructuring
A flat organization is composed of many hierarchical levels and narrow spans of control.
TrueFalse - (ANSWER)False
A tall organization is composed of many hierarchical levels and narrow spans of control
Horizontal structures have fewer managerial levels than vertical structures
TrueFalse - (ANSWER)True
This is the definition of the term horizontal structures.
In general, a functional structure tends to be most appropriate for differentiated businesses.
TrueFalse - (ANSWER)False
In general, a functional structure tends to be most appropriate for defenders and low-cost businesses.
