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1
A small firm with a simple structure often doesn't foster creativity and individualism because of its formal atmosphere.
A)True
B)False
2
A major advantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.
A)True
B)False
3
The advantages of the functional and product-oriented structure are combined in the matrix structure.
A)True
B)False
4
The type of organizational structure can also strongly influence a firm's strategy, day-to-day operations, and performance.
A)True
B)False
5
In their book, Reengineering the Corporation, Michael Hammer and James Champy suggest the innovative application of new engineering technologies to revitalize American corporations.
A)True
B)False
6
A __________ structure is most likely developed when an organization with a simple structure increases its sales revenue and volume of outputs.
A)divisional
B)functional
C)product-market
D)geographic
7
Which of the following characterizes a simple structure?
A)high specialization and low centralization
B)low specialization and high centralization
C)low formality and low creativity
D)high formality and low centralization
8
A divisional type of organizational structure has which of the following advantages?
A)efficient use of managerial and technical talent
B)an enhanced ability to respond quickly to changes in the external environment
C)a high degree of emphasis on long term performance
D)uniformity in image and quality across divisions
9
A __________ has been defined as a continually evolving network of independent companies—suppliers, customers, even competitors—linked together to share skills, costs, and access to one another's markets.
A)divisional corporation
B)corporate supply chain
C)virtual organization
D)independent corporation
10
Which of the following is a disadvantage of a virtual organization?
A)enables the sharing of costs and skills
B)requires new and difficult-to-acquire managerial skills
C)enhances access to global markets
D)encourages both organizational knowledge sharing and learning





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