WPC 480 CHAPTER 11 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
Organizational structure - Answers specifies the firm's
formal reporting relationships, procedures,
controls, and authority and decision-making
processes.
Strategic controls - Answers are largely subjective criteria
intended to verify that the firm is using
appropriate strategies for the conditions in the
external environment and the company's
competitive advantages.
simple structure - Answers is a structure in which the
owner-manager makes all major decisions and
monitors all activities, while the staff serves as
an extension of the manager's supervisory
authority.
Organizational controls - Answers guide the use of
strategy, indicate how to compare actual results
with expected results, and suggest corrective
actions to take when the difference is
unacceptable.
Financial controls - Answers are largely objective criteria
used to measure the firm's performance against
previously established quantitative standards.
cooperative form - Answers is an M-form structure in
which horizontal integration is used to bring
about interdivisional cooperation.
multidivisional (M-form) structure - Answers consists of a corporate office and operating
divisions, each operating division representing a
separate business or profit center in which the
top corporate officer delegates responsibilities
for day-to-day operations and business-unit
strategy to division managers.
functional structure - Answers consists of a chief
executive officer and a limited corporate staff,
with functional line managers in dominant
organizational areas such as production,
accounting, marketing, R&D, engineering, and
human resources.
strategic business unit (SBU) form - Answers is an
M-form consisting of three levels: corporate
headquarters, strategic business units (SBUs),
and SBU divisions.
worldwide geographic area structure - Answers emphasizes national interests and facilitates the
firm's efforts to satisfy local differences.
competitive form - Answers is an M-form structure
characterized by complete independence
among the firm's divisions that compete for
corporate resources.
worldwide product divisional structure - Answers decision-making authority is centralized in the
worldwide division headquarters to coordinate
and integrate decisions and actions among
divisional business units.
combination structure - Answers is a structure
drawing characteristics and mechanisms from
both the worldwide geographic area structure
and the worldwide product divisional structure
Organizational structure - Answers specifies the firm's
formal reporting relationships, procedures,
controls, and authority and decision-making
processes.
Strategic controls - Answers are largely subjective criteria
intended to verify that the firm is using
appropriate strategies for the conditions in the
external environment and the company's
competitive advantages.
simple structure - Answers is a structure in which the
owner-manager makes all major decisions and
monitors all activities, while the staff serves as
an extension of the manager's supervisory
authority.
Organizational controls - Answers guide the use of
strategy, indicate how to compare actual results
with expected results, and suggest corrective
actions to take when the difference is
unacceptable.
Financial controls - Answers are largely objective criteria
used to measure the firm's performance against
previously established quantitative standards.
cooperative form - Answers is an M-form structure in
which horizontal integration is used to bring
about interdivisional cooperation.
multidivisional (M-form) structure - Answers consists of a corporate office and operating
divisions, each operating division representing a
separate business or profit center in which the
top corporate officer delegates responsibilities
for day-to-day operations and business-unit
strategy to division managers.
functional structure - Answers consists of a chief
executive officer and a limited corporate staff,
with functional line managers in dominant
organizational areas such as production,
accounting, marketing, R&D, engineering, and
human resources.
strategic business unit (SBU) form - Answers is an
M-form consisting of three levels: corporate
headquarters, strategic business units (SBUs),
and SBU divisions.
worldwide geographic area structure - Answers emphasizes national interests and facilitates the
firm's efforts to satisfy local differences.
competitive form - Answers is an M-form structure
characterized by complete independence
among the firm's divisions that compete for
corporate resources.
worldwide product divisional structure - Answers decision-making authority is centralized in the
worldwide division headquarters to coordinate
and integrate decisions and actions among
divisional business units.
combination structure - Answers is a structure
drawing characteristics and mechanisms from
both the worldwide geographic area structure
and the worldwide product divisional structure
