MBA 706 LSUS Exam 04 McLaughlin
T/F: 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.
True. This is the definition of the term corporate restructuring.
T/F: A flat organization is composed of many hierarchical levels and narrow spans of
control.
False. A tall organization is composed of many hierarchical levels and narrow spans of
control.
T/F: Horizontal structures have fewer managerial levels than vertical structures.
True. This is the definition of the term horizontal structures.
T/F: In general, a functional structure tends to be most appropriate for differentiated
businesses.
False. In general, a functional structure tends to be most appropriate for defenders and
low-cost businesses.
T/F: Corporate restructuring can be voluntary or involuntary.
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.
T/F: Progressive firms restructure only when firm performance declines.
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
__________.
A. organizational structure
B. organizational culture
C. organizational dynamic
D. none of the above
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 __________.
A. centralization
B. decentralization
C. horizontal growth
D. vertical growth
C. horizontal growth
Horizontal growth refers to an increase in the breadth of an organization's structure
Which of the following structures tends to be the most centralized?
A. functional structure
B. product divisional
C. geographic divisional structure
D. matrix structure
A. functional structure
The functional structure is usually the most centralized whereas the matrix structure is
usually the most decentralized.
The notion of a profit center is consistent with which form of organizational structure?
A. functional structure
B. product divisional
C. geographic divisional structure
D. matrix structure
B. product divisional
Within the product divisional structure, each product division becomes a profit center, a
well-defined organizational unit headed by a manager accountable for its revenues and
expenditures.
T/F: 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.
True. This is the definition of the term corporate restructuring.
T/F: A flat organization is composed of many hierarchical levels and narrow spans of
control.
False. A tall organization is composed of many hierarchical levels and narrow spans of
control.
T/F: Horizontal structures have fewer managerial levels than vertical structures.
True. This is the definition of the term horizontal structures.
T/F: In general, a functional structure tends to be most appropriate for differentiated
businesses.
False. In general, a functional structure tends to be most appropriate for defenders and
low-cost businesses.
T/F: Corporate restructuring can be voluntary or involuntary.
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.
T/F: Progressive firms restructure only when firm performance declines.
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
__________.
A. organizational structure
B. organizational culture
C. organizational dynamic
D. none of the above
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 __________.
A. centralization
B. decentralization
C. horizontal growth
D. vertical growth
C. horizontal growth
Horizontal growth refers to an increase in the breadth of an organization's structure
Which of the following structures tends to be the most centralized?
A. functional structure
B. product divisional
C. geographic divisional structure
D. matrix structure
A. functional structure
The functional structure is usually the most centralized whereas the matrix structure is
usually the most decentralized.
The notion of a profit center is consistent with which form of organizational structure?
A. functional structure
B. product divisional
C. geographic divisional structure
D. matrix structure
B. product divisional
Within the product divisional structure, each product division becomes a profit center, a
well-defined organizational unit headed by a manager accountable for its revenues and
expenditures.
