BA 453 EXAM CORE QUESTIONS WITH SOLUTIONS 2025
GRADED A+
✔✔Centralization - ✔✔where the decision is made (slow response time/ reduced
customer satisfaction); Example: BP's Mexican Gulf Oil Spill
✔✔Hierarchy - ✔✔formal, position-based reporting lines
✔✔Tall structure - ✔✔higher degree of centralization
✔✔Flat structure - ✔✔lower degree of centralization
✔✔Organic organization - ✔✔• Low degree of specialization and formalization
-Differentiation
• Flat structure
• Decentralized decision making
• Uses virtual team due to information technology
• Example: Zappos, W. L. Gore, and many high-tech firms
✔✔Mechanistic organization - ✔✔• High degree of specialization and formalization
-cost leadership
• Tall structure
• Centralized decision making
• Example: McDonald's
✔✔Simple structure - ✔✔• Small firms with low complexity
• Top management makes all important strategic decisions
• Low degree of formalization and specialization
• A basic organizational structure
• Examples: small advertising, consulting, accounting,
and law firms
✔✔Functional - ✔✔_________________ structure:
• Groups of employees with distinct functional areas
• The areas of expertise correspond to distinct stages in the company value chain
activities
• Example: College of Business Administration, School
of Management...etc.
✔✔Multidivisional - ✔✔_________________ structure:
• Consists of several distinct SBUs • Each SBU is independent and led by a CEO
• Each CEO of SBUs report to the corporate office
• Examples:
• Zappos is an SBU under Amazon
• Skype is an SBU under Microsoft
, • Paypal is an SBU under eBay
• Companies using M-form structure
• GE, Honda
✔✔Matrix - ✔✔_________________ structure:
A combination of functional and M-form structure
✔✔Organizational culture - ✔✔• Collectively shared values and norms
• Value: what is considered important
• Norms: appropriate employee behaviors and attitudes
• Artifacts: expression of culture in items such as physical design, language, stories, and
celebrations
✔✔Socialization - ✔✔• Internalize organization's value and norms through interactions
✔✔Revenue Budget - ✔✔Budget used to project or forecast future sales
✔✔Expense Budget - ✔✔Budget used to determine spending on supplies, projects, or
activities
✔✔Profit Budget - ✔✔Budget used by profit centers, which have "profit and loss"
responsibility
✔✔Cash Budget - ✔✔Budget used to forecast the cash a company will have for
expenses
✔✔Capital Expenditure Budget - ✔✔Budget used to forecast large, long-lasting
investments
✔✔Variable Budget - ✔✔Budget used to project costs across varying levels of
sales/revenues
✔✔Fixed Budgeting - ✔✔Type of budgeting established during a planned period
assuming one activity level and do not change if circumstances change
✔✔Flexible Budgeting - ✔✔Type of budgeting established during a planning period, but
explicitly forecast costs and revenues based on various levels of activity so that
adjustments can be made as the periods are completed
✔✔Zero-based budgeting - ✔✔Type of budgeting where managers are to estimate
sales, production, and other data as though operations are being started for the first
time
✔✔Organizational Inertia - ✔✔• Resistance to change
GRADED A+
✔✔Centralization - ✔✔where the decision is made (slow response time/ reduced
customer satisfaction); Example: BP's Mexican Gulf Oil Spill
✔✔Hierarchy - ✔✔formal, position-based reporting lines
✔✔Tall structure - ✔✔higher degree of centralization
✔✔Flat structure - ✔✔lower degree of centralization
✔✔Organic organization - ✔✔• Low degree of specialization and formalization
-Differentiation
• Flat structure
• Decentralized decision making
• Uses virtual team due to information technology
• Example: Zappos, W. L. Gore, and many high-tech firms
✔✔Mechanistic organization - ✔✔• High degree of specialization and formalization
-cost leadership
• Tall structure
• Centralized decision making
• Example: McDonald's
✔✔Simple structure - ✔✔• Small firms with low complexity
• Top management makes all important strategic decisions
• Low degree of formalization and specialization
• A basic organizational structure
• Examples: small advertising, consulting, accounting,
and law firms
✔✔Functional - ✔✔_________________ structure:
• Groups of employees with distinct functional areas
• The areas of expertise correspond to distinct stages in the company value chain
activities
• Example: College of Business Administration, School
of Management...etc.
✔✔Multidivisional - ✔✔_________________ structure:
• Consists of several distinct SBUs • Each SBU is independent and led by a CEO
• Each CEO of SBUs report to the corporate office
• Examples:
• Zappos is an SBU under Amazon
• Skype is an SBU under Microsoft
, • Paypal is an SBU under eBay
• Companies using M-form structure
• GE, Honda
✔✔Matrix - ✔✔_________________ structure:
A combination of functional and M-form structure
✔✔Organizational culture - ✔✔• Collectively shared values and norms
• Value: what is considered important
• Norms: appropriate employee behaviors and attitudes
• Artifacts: expression of culture in items such as physical design, language, stories, and
celebrations
✔✔Socialization - ✔✔• Internalize organization's value and norms through interactions
✔✔Revenue Budget - ✔✔Budget used to project or forecast future sales
✔✔Expense Budget - ✔✔Budget used to determine spending on supplies, projects, or
activities
✔✔Profit Budget - ✔✔Budget used by profit centers, which have "profit and loss"
responsibility
✔✔Cash Budget - ✔✔Budget used to forecast the cash a company will have for
expenses
✔✔Capital Expenditure Budget - ✔✔Budget used to forecast large, long-lasting
investments
✔✔Variable Budget - ✔✔Budget used to project costs across varying levels of
sales/revenues
✔✔Fixed Budgeting - ✔✔Type of budgeting established during a planned period
assuming one activity level and do not change if circumstances change
✔✔Flexible Budgeting - ✔✔Type of budgeting established during a planning period, but
explicitly forecast costs and revenues based on various levels of activity so that
adjustments can be made as the periods are completed
✔✔Zero-based budgeting - ✔✔Type of budgeting where managers are to estimate
sales, production, and other data as though operations are being started for the first
time
✔✔Organizational Inertia - ✔✔• Resistance to change
