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As firms grow,owner managers often need to hire functional specialists to handle the increased information-processing burden.

A) True
B) False

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According to author,Jeffrey Pfeffer,which of the following is not an advantage of teams?


A) Teams interact so closely and therefore coordination and integration becomes unnecessary.
B) Teams substitute peer-based control for hierarchical control of work.
C) Teams often develop more creative solutions because they share.
D) Teams permit the absorption of administrative tasks previously performed by specialists.

E) C) and D)
F) A) and C)

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When a firm has international operations,choosing the most appropriate structure depends upon the extent of international expansion,the type of strategy,and the degree of market density.

A) True
B) False

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The strategy and structure of a firm change as the firm increases in size,diversifies into new product markets,and limits its geographic scope.

A) True
B) False

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Which of the following is a disadvantage of a functional type of organizational structure?


A) Differences in functional orientation may impede communication and coordination.
B) Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas.
C) Decision making is centralized at the top of the organization.
D) Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.

E) B) and C)
F) C) and D)

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The phrase that best defines a virtual organization is a(n)


A) dot.com company.
B) type of modular structure.
C) organization that uses information technology to integrate different functions.
D) continually evolving network of independent companies.

E) B) and C)
F) A) and C)

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