When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a
A) divisional structure.
B) functional structure.
C) product-market structure.
D) geographic structure.

Question

Quizplus · Accepted Answer

As an organization grows in terms of sales revenue and output volume, it typically requires more specialization and coordination among its operations. A functional structure, which organizes the company based on specialized functions such as marketing, finance, and production, is a common evolution for growing companies to manage these complexities more efficiently.

When an Organization with a Simple Structure Increases Its Sales