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How Does Organizational Culture and Design Develop in a Start-Up

Question 24

Multiple Choice

How does organizational culture and design develop in a start-up company?


A) The founders of start-up companies typically spell out a plan for their organizational culture and design in their initial business plan.
B) Once a start-up has received funding, its investors typically dictate the type of organizational culture and design that they require.
C) In the early days of the business, the owners hire people they like and trust, but as the business grows, they hire outside people and need to develop a more explicit organizational culture and design.
D) Because most start-up companies are sole proprietorships and partnerships, most new companies have no need to identify a mission or to create an organizational culture because the owners are synonymous with the company's goals and mission.
E) Most new companies begin operations with a strong sense of their organizational culture and design, but as the company grows, these guiding principles are no longer needed and are therefore abandoned in the quest for profit.

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