Question 1

Modular companies can achieve rapid growth because they don't require large investments in fixed assets.

Accepted Answer

A) True 
 B)False

Question 2

The virtual organization is characterized by participating firms which pursue a collective strategy that enables them to cope with environmental uncertainty through cooperative efforts.

Accepted Answer

A) True 
 B)False

Question 3

The virtual type of organization is a network of independent companies linked together to share skills,costs,and access to one another's markets.

Accepted Answer

A) True 
 B)False

Question 4

A strategy of related diversification requires most firms to organize around geographical areas or product lines.This type of organizational growth leads to a(n)

Accepted Answer

A)   divisional structure.
B)   functional structure.
C)   matrix structure.
D)   international structure.E) A) and B)
F) A) and C)

Question 5

Which of the following is not a disadvantage of the barrier-free form of organization?

Accepted Answer

A)   Lack of strong leadership can lead to coordination problems.
B)   Democratic process can be time-consuming and difficult to manage.
C)   Fewer internal barriers means fewer political issues to deal with.
D)   If trust among employees is not sufficiently high, organizational performance may suffer.E) A) and B)
F) A) and C)

Question 6

Which of the following is not a boundaryless organizational design?

Accepted Answer

A)   virtual
B)   modular
C)   matrix
D)   barrier-freeE) B) and C)
F) C) and D)

Question 7

An ambidextrous organization achieves both adaptability and alignment.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following boundaries exist between the functional areas of an organization?

Accepted Answer

A)   vertical boundaries
B)   horizontal boundaries
C)   external boundaries
D)   all of theseE) A) and B)
F) All of the above

Question 9

Functional structures are usually found in organizations where there is

Accepted Answer

A)   high volume production.
B)   unrelated product lines or service offerings.
C)   very little vertical integration.
D)   a strong need to decentralize decision making.E) None of the above
F) A) and C)

Question 10

When an organization with a simple structure increases its sales revenue and volume of outputs,it is most likely to develop a

Accepted Answer

A)   divisional structure.
B)   functional structure.
C)   product-market structure.
D)   geographic structure.E) B) and D)
F) A) and B)

Question 11

Which of the following is not a strategic risk of outsourcing?

Accepted Answer

A)   loss of critical skills
B)   loss of cross-functional skills
C)   loss of control over a supplier
D)   loss of non-vital functionsE) B) and C)
F) B) and D)

Question 12

A matrix organization is organized strictly along product lines.

Accepted Answer

A) True 
 B)False

Question 13

Because the modular form of organizing involves outsourcing vital functions,modular firms often forfeit full strategic control.

Accepted Answer

A) True 
 B)False

Question 14

Diversified Canadian conglomerate Weston has put its businesses into three primary SBUs,which are

Accepted Answer

A)   bakeries, retail and food processing.
B)   retail, shipping, and online sales through Loblaws.com.
C)   baked goods, unbaked goods, and grains and oilseeds.
D)   retail, wholesale, and manufacturing.E) A) and D)
F) C) and D)

Question 15

Important advantages of a holding company structure include

Accepted Answer

A)   savings in personnel and overhead expenses associated with a small corporate office.
B)   a high level of awareness at the corporate office of issues faced by individual divisions.
C)   a high level of control of division executives by executives at the corporate level.
D)   gaining synergistic benefits across businesses.E) B) and C)
F) A) and B)

Question 16

A simple structure is characterized by

Accepted Answer

A)   high specialization and low centralization.
B)   low specialization and high centralization.
C)   low formality and low creativity.
D)   high formality and low centralization.E) A) and B)
F) All of the above

Question 17

Discuss the basic idea of the modular organizational structure.

Accepted Answer

The modular organization outsources non-...

Question 18

An organization that has both adaptability and alignment is known as

Accepted Answer

A)   a matrix organization
B)   an ambidextrous organization
C)   a virtual organization
D)   a boundaryless organizationE) All of the above
F) None of the above

Question 19

There is no link between a firm's strategy and its structure.

Accepted Answer

A) True 
 B)False

Question 20

All of the following are advantages of a strategic business unit (SBU) type of organizational structure except

Accepted Answer

A)   divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies.
B)   divisional executives can respond quickly to market changes and opportunities.
C)   planning and control by the corporate office is more manageable.
D)   the corporate office is more removed from the individual divisions.E) A) and B)
F) A) and D)

Exam 9: Strategic Control and Corporate Governance

Modular companies can achieve rapid growth because they don't require large investments in fixed assets.

Correct AnswerverifiedShow Answer

An organization that has both adaptability and alignment is known as

Correct AnswerverifiedShow Answer

All of the following are advantages of a strategic business unit (SBU) type of organizational structure except

Correct AnswerverifiedShow Answer

Because the modular form of organizing involves outsourcing vital functions,modular firms often forfeit full strategic control.

Correct AnswerverifiedShow Answer

A strategy of related diversification requires most firms to organize around geographical areas or product lines.This type of organizational growth leads to a(n)

Correct AnswerverifiedShow Answer

The virtual organization is characterized by participating firms which pursue a collective strategy that enables them to cope with environmental uncertainty through cooperative efforts.

Correct AnswerverifiedShow Answer

When an organization with a simple structure increases its sales revenue and volume of outputs,it is most likely to develop a

Correct AnswerverifiedShow Answer

A simple structure is characterized by

Correct AnswerverifiedShow Answer

There is no link between a firm's strategy and its structure.

Correct AnswerverifiedShow Answer

A matrix organization is organized strictly along product lines.

Correct AnswerverifiedShow Answer

Which of the following is not a strategic risk of outsourcing?

Correct AnswerverifiedShow Answer

Which of the following is not a disadvantage of the barrier-free form of organization?

Correct AnswerverifiedShow Answer

Which of the following boundaries exist between the functional areas of an organization?

Correct AnswerverifiedShow Answer

Diversified Canadian conglomerate Weston has put its businesses into three primary SBUs,which are

Correct AnswerverifiedShow Answer

Important advantages of a holding company structure include

Correct AnswerverifiedShow Answer

Which of the following is not a boundaryless organizational design?

Correct AnswerverifiedShow Answer

The virtual type of organization is a network of independent companies linked together to share skills,costs,and access to one another's markets.

Correct AnswerverifiedShow Answer

Discuss the basic idea of the modular organizational structure.

Correct AnswerverifiedThe modular organization outsources non-...View AnswerShow Answer

An ambidextrous organization achieves both adaptability and alignment.

Correct AnswerverifiedShow Answer

Functional structures are usually found in organizations where there is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The modular organization outsources non-...
View Answer

Correct Answer
verified

Correct Answer
verified