MBA 706 LSUS Exam 04 McLaughlin
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1. T/F: Corporate restructuring True. This is the definition of the term corporate restructur-
seeks to improve efficiency and ing.
performance through such ac-
tions as realigning divisions in
the firm, reducing the amount
of cash under the discretion of
senior executives, and acquiring
or divesting business units.
2. T/F: A flat organization is com- False. A tall organization is composed of many hierarchical
posed of many hierarchical lev- levels and narrow spans of control.
els and narrow spans of control.
3. T/F: Horizontal structures have True. This is the definition of the term horizontal structures.
fewer managerial levels than
vertical structures.
4. T/F: In general, a functional False. In general, a functional structure tends to be most
structure tends to be most ap- appropriate for defenders and low-cost businesses.
propriate for differentiated busi-
nesses.
5. T/F: Corporate restructuring can True. Progressive firms restructure voluntarily when it be-
be voluntary or involuntary. comes clear that a change is necessary, ideally before per-
formance 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.
6. T/F: Progressive firms restruc- False. Progressive firms restructure when it becomes clear
ture only when firm perfor- that a change is necessary—ideally before performance
mance declines. declines.
1/9
, MBA 706 LSUS Exam 04 McLaughlin
Study online at https://quizlet.com/_dv1qty
7. The formal means by which A. organizational structure
work is coordinated in an orga- The organizational structure is the formal means by which
nization is called the __________. work is coordinated in an organization.
A. organizational structure
B. organizational culture
C. organizational dynamic
D. none of the above
8. An increase in the breadth of C. horizontal growth
an organization's structure is Horizontal growth refers to an increase in the breadth of an
known as __________. organization's structure
A. centralization
B. decentralization
C. horizontal growth
D. vertical growth
9. Which of the following struc- A. functional structure
tures tends to be the most cen- The functional structure is usually the most centralized
tralized? whereas the matrix structure is usually the most decentral-
A. functional structure ized.
B. product divisional
C. geographic divisional struc-
ture
D. matrix structure
10. The notion of a profit center is B. product divisional
consistent with which form of Within the product divisional structure, each product divi-
organizational structure? sion becomes a profit center, a well-defined organizational
A. functional structure unit headed by a manager accountable for its revenues and
B. product divisional expenditures.
C. geographic divisional struc-
2/9
Study online at https://quizlet.com/_dv1qty
1. T/F: Corporate restructuring True. This is the definition of the term corporate restructur-
seeks to improve efficiency and ing.
performance through such ac-
tions as realigning divisions in
the firm, reducing the amount
of cash under the discretion of
senior executives, and acquiring
or divesting business units.
2. T/F: A flat organization is com- False. A tall organization is composed of many hierarchical
posed of many hierarchical lev- levels and narrow spans of control.
els and narrow spans of control.
3. T/F: Horizontal structures have True. This is the definition of the term horizontal structures.
fewer managerial levels than
vertical structures.
4. T/F: In general, a functional False. In general, a functional structure tends to be most
structure tends to be most ap- appropriate for defenders and low-cost businesses.
propriate for differentiated busi-
nesses.
5. T/F: Corporate restructuring can True. Progressive firms restructure voluntarily when it be-
be voluntary or involuntary. comes clear that a change is necessary, ideally before per-
formance 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.
6. T/F: Progressive firms restruc- False. Progressive firms restructure when it becomes clear
ture only when firm perfor- that a change is necessary—ideally before performance
mance declines. declines.
1/9
, MBA 706 LSUS Exam 04 McLaughlin
Study online at https://quizlet.com/_dv1qty
7. The formal means by which A. organizational structure
work is coordinated in an orga- The organizational structure is the formal means by which
nization is called the __________. work is coordinated in an organization.
A. organizational structure
B. organizational culture
C. organizational dynamic
D. none of the above
8. An increase in the breadth of C. horizontal growth
an organization's structure is Horizontal growth refers to an increase in the breadth of an
known as __________. organization's structure
A. centralization
B. decentralization
C. horizontal growth
D. vertical growth
9. Which of the following struc- A. functional structure
tures tends to be the most cen- The functional structure is usually the most centralized
tralized? whereas the matrix structure is usually the most decentral-
A. functional structure ized.
B. product divisional
C. geographic divisional struc-
ture
D. matrix structure
10. The notion of a profit center is B. product divisional
consistent with which form of Within the product divisional structure, each product divi-
organizational structure? sion becomes a profit center, a well-defined organizational
A. functional structure unit headed by a manager accountable for its revenues and
B. product divisional expenditures.
C. geographic divisional struc-
2/9
