BUSINESS ADMINISTRATION LEVEL 3
FINAL STUDY SCRIPT 2026 COMPLETE
QUESTIONS AND SOLUTIONS
●● Vision statement. Answer: what the organisation wants to become. It
is a future oriented declaration of the organisations purpose and
aspirations
●● Organisational structures. Answer: An organisational structure is a
system that outlines how certain activities are directed in order to
achieve the goals of the organisation
●● Matrix structure. Answer: In this structure, you share resources and
staff across teams and projects. It is a combination of two or more types
of organisational structures where employees usually have a dual
reporting relationship (generally to their functional manager as well the
project manager.
●● Advantages of a matrix structure. Answer: · Improve decision-
making
· Help breakdown traditional 'silo' barrier
· Improve communication across the business
· Allow staff to apply their skills in different roles
· Help share best practice and ideas across teams
,· Increase efficiencies due to sharing resources across departments
●● Disadvantages of a matrix structure. Answer: · Confusion regarding
roles, responsibilities, and priorities
· Divided loyalties between project teams
· Blurred lines of accountability
· Difficulties in coordinating tasks or functions
· Power struggle between the project manager and the functional
manager
· Large overhead costs, on account of having multiple managers
●● Flat organisational structure. Answer: The flat organisational
structure is an organisational model with relatively few or no levels of
middle management between the executives and the frontline
employees.
●● Advantages of a flat structure. Answer: · Better communication and
relationships between different roles
· Better team spirit as there is less hierarchy
· Simple, faster decision making as the chain of command is shorter
· Better ability for the business to change and adapt
· Greater job satisfaction when employees are given more autonomy
· More self-direction can lead to more innovation and efficiencies
· Ability to lower operational costs
, ●● Disadvantages of a flat structure. Answer: · Risk of generalisation
and confusion if it's not clear who to report to
· Lower sense of accountability as employees may have more than one
boss
· Risk of power struggles arising in absence of a formal system
· Lack of employee specialism and specific job functions
· Lack of long-term growth or opportunity for promotion
Difficulties in scaling up and growing the company
●● Functional organisation structure. Answer: A functional
organisational start with positions with the highest level of responsibility
at the top and goes down from there. Primarily employees are organised
according to their specific skills and their corresponding function in the
company.
●● Advantages of functional structure. Answer: · Allows employees to
focus on their role
· Encourages specialisation
· Help teams and department to feel self-determined
· Is easily scalable in any sized company
●● Disdvantages of functional structure. Answer: · Can create silos
within an organisation
FINAL STUDY SCRIPT 2026 COMPLETE
QUESTIONS AND SOLUTIONS
●● Vision statement. Answer: what the organisation wants to become. It
is a future oriented declaration of the organisations purpose and
aspirations
●● Organisational structures. Answer: An organisational structure is a
system that outlines how certain activities are directed in order to
achieve the goals of the organisation
●● Matrix structure. Answer: In this structure, you share resources and
staff across teams and projects. It is a combination of two or more types
of organisational structures where employees usually have a dual
reporting relationship (generally to their functional manager as well the
project manager.
●● Advantages of a matrix structure. Answer: · Improve decision-
making
· Help breakdown traditional 'silo' barrier
· Improve communication across the business
· Allow staff to apply their skills in different roles
· Help share best practice and ideas across teams
,· Increase efficiencies due to sharing resources across departments
●● Disadvantages of a matrix structure. Answer: · Confusion regarding
roles, responsibilities, and priorities
· Divided loyalties between project teams
· Blurred lines of accountability
· Difficulties in coordinating tasks or functions
· Power struggle between the project manager and the functional
manager
· Large overhead costs, on account of having multiple managers
●● Flat organisational structure. Answer: The flat organisational
structure is an organisational model with relatively few or no levels of
middle management between the executives and the frontline
employees.
●● Advantages of a flat structure. Answer: · Better communication and
relationships between different roles
· Better team spirit as there is less hierarchy
· Simple, faster decision making as the chain of command is shorter
· Better ability for the business to change and adapt
· Greater job satisfaction when employees are given more autonomy
· More self-direction can lead to more innovation and efficiencies
· Ability to lower operational costs
, ●● Disadvantages of a flat structure. Answer: · Risk of generalisation
and confusion if it's not clear who to report to
· Lower sense of accountability as employees may have more than one
boss
· Risk of power struggles arising in absence of a formal system
· Lack of employee specialism and specific job functions
· Lack of long-term growth or opportunity for promotion
Difficulties in scaling up and growing the company
●● Functional organisation structure. Answer: A functional
organisational start with positions with the highest level of responsibility
at the top and goes down from there. Primarily employees are organised
according to their specific skills and their corresponding function in the
company.
●● Advantages of functional structure. Answer: · Allows employees to
focus on their role
· Encourages specialisation
· Help teams and department to feel self-determined
· Is easily scalable in any sized company
●● Disdvantages of functional structure. Answer: · Can create silos
within an organisation
