1. Because the functional structure groups specialists and fosters economies of scale, it tends to address cost and quality concerns well.

A. True

B. False

2. Consistency and coordination tend to be problems in which organizational structure?

A. Functional structure

B. Product divisional structure

C. Geographic divisional structure

D. Both the product divisional and geographic divisional structures

3. Coordination and consistency are often strengths in firms with a product divisional structure.

A. True

B. False

4. Corporate restructuring can include such actions as realigning divisions in the firm, reducing the amount of cash under the discretion of senior executives, and acquiring or divesting business units.

A. True

B. False

5. Firms that start with only a few employees usually adopt a

A. Simple structure

B. Product divisional structure

C. Geographic divisional structure

D. Matrix structure

6. Geographic and product divisional structures are typically more flexible than matrix and functional structures.

A. True

B. False

7. Horizontal growth refers to an increase in the length of the organization’s hierarchy.

A. True

B. False

8. Increasing both the length and breadth of the organizational structure is called

A. Horizontal Growth

B. Vertical Growth

C. Span of control

D. None of the above

9. Managers are grouped according to their expertise in the product divisional structure.

A. True

B. False

10. Profit centers are associated with which organizational structure?

A. Functional structure

B. Simple structure

C. Geographic divisional structure

D. None of the above