MBA 705 Chapter 10 Test Questions
and Answers.
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. - 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 -
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. - Answer True
This is the definition of the term horizontal structures.
In general, a functional structure tends to be most appropriate for differentiatedbusinesses. -
Answer False
In general, a functional structure tends to be most appropriate for defenders and low-cost
businesses.
Corporate restructuring can be voluntary or involuntary. - Answer True
Progressive firms restructure voluntarily when it becomes clear that a change is necessary,
ideally before performance declines are substantial. However, firms that do not manage for
value may eventually be forced by outsiders to restructure involuntarily, a process that is usually
more costly.
Progressive firms restructure only when firm performance declines. - Answer False
Progressive firms restructure when it becomes clear that a change is necessary—ideally before
performance declines.
The formal means by which work is coordinated in an organization is called the_______. -
Answer A. organizational structure
The organizational structure is the formal means by which work is coordinated in an
organization.
An increase in the breadth of an organization's structure is known as_______. - Answer C.
horizontal growth
and Answers.
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. - 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 -
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. - Answer True
This is the definition of the term horizontal structures.
In general, a functional structure tends to be most appropriate for differentiatedbusinesses. -
Answer False
In general, a functional structure tends to be most appropriate for defenders and low-cost
businesses.
Corporate restructuring can be voluntary or involuntary. - Answer True
Progressive firms restructure voluntarily when it becomes clear that a change is necessary,
ideally before performance declines are substantial. However, firms that do not manage for
value may eventually be forced by outsiders to restructure involuntarily, a process that is usually
more costly.
Progressive firms restructure only when firm performance declines. - Answer False
Progressive firms restructure when it becomes clear that a change is necessary—ideally before
performance declines.
The formal means by which work is coordinated in an organization is called the_______. -
Answer A. organizational structure
The organizational structure is the formal means by which work is coordinated in an
organization.
An increase in the breadth of an organization's structure is known as_______. - Answer C.
horizontal growth
