Question 1

Restructuring an organization can be in response to an immediate need to reduce costs.

Accepted Answer

Restructuring can be done for various reasons, one of which is to reduce costs quickly in response to a financial crisis or decline in revenue. Other reasons for restructuring could also include aligning the organization with new strategic goals, improving operational efficiency, or adapting to changes in the market or industry.

Question 2

As strategies change,so must the business system framework required to ensure the successful execution of the revised strategic direction.

Accepted Answer

This statement is true. As the strategies of a business change, the framework of the business system must also adapt to support the successful implementation of the new strategies.

Question 3

Technology obsolescence generally occurs when companies recognize a disconnection to their intended strategy as a result of disruptions which have occurred either internally or from the external marketplace.

Accepted Answer

The answer of Technology obsolescence generally occurs when companies recognize...

Question 4

Restructuring an organization can be in response to the launch of new products or services.

Accepted Answer

When a company launches new products or services, they may need to restructure their organization to ensure it is optimized for the new offerings. This could involve creating new teams or departments, realigning roles and responsibilities, or streamlining processes to increase efficiency.

Question 5

Restructuring generally occurs when companies recognize a disconnection to their intended strategy as a result of disruptions which have occurred either internally or from the external marketplace.

Accepted Answer

Restructuring is often a response to disruptions that have caused a disconnection between a company's current state and its intended strategy, which can come from both internal and external factors.

Question 6

As plans change,so must the business system framework required to ensure the successful execution of the revised strategic direction.

Accepted Answer

The answer of As plans change,so must the business system...

Question 7

Restructuring an organization can be in response to competitive pressure.

Accepted Answer

Restructuring an organization is often done in response to various pressures, including competitive pressure, changes in the market, financial challenges, or a need to streamline operations.

Question 8

Restructuring involves relatively minor changes to an organization to better meet the needs of management.

Accepted Answer

Restructuring involves major changes to an organization, including changes to the organizational structure, processes, and systems, in order to improve its overall efficiency and effectiveness.

Question 9

Fundamental change generally occurs when companies recognize a disconnection to their intended strategy as a result of disruptions which have occurred either internally or from the external marketplace.

Accepted Answer

The answer of Fundamental change generally occurs when companies recognize...

Question 10

Restructuring an organization can be in response to significant growth.

Accepted Answer

When an organization experiences significant growth, it may require a restructuring to properly handle the increased workload and ensure efficient operations.

Question 11

Decision-Making control refers to the number of subordinates a manager will have reporting to him or her.

Accepted Answer

Decision-making control refers to the authority and responsibility a manager has in making decisions, not the number of subordinates. The number of subordinates is related to the concept of "span of control."

Question 12

Nature of the work refers to the number of subordinates a manager will have reporting to him or her.

Accepted Answer

The nature of work refers to the type of tasks and responsibilities that a manager will have, whereas the number of subordinates is related to the span of control.

Question 13

As departments change,so must the business system framework required to ensure the successful execution of the revised strategic direction.

Accepted Answer

The answer of As departments change,so must the business system...

Question 14

Bankruptcy generally occurs when companies recognize a disconnection to their intended strategy as a result of disruptions which have occurred either internally or from the external marketplace.

Accepted Answer

Bankruptcy typically occurs when a company is unable to meet its financial obligations, often due to insufficient cash flow or excessive debt, rather than solely from strategic disconnections.

Question 15

The goal of any restructuring initiative should be to increase the liquidity and the long-term health of the organization.

Accepted Answer

The answer of The goal of any restructuring initiative should...

Question 16

As organizations change,so must the business system framework required to ensure the successful execution of the revised strategic direction.

Accepted Answer

The answer of As organizations change,so must the business system...

Question 17

Managerial hierarchy refers to the number of subordinates a manager will have reporting to him or her.

Accepted Answer

Managerial hierarchy refers to the levels of management within an organization, while the number of subordinates reporting to a manager is known as the span of control.

Question 18

The goal of any restructuring initiative should be to increase the costs and the long-term health of the organization.

Accepted Answer

The goal of restructuring is typically to reduce costs and improve the long-term health and efficiency of the organization, not to increase costs.

Question 19

Span of control refers to the number of subordinates a manager will have reporting to him or her.

Accepted Answer

Span of control is defined as the number of employees who report to a single manager or supervisor. This can vary depending on the size and complexity of an organization. Generally, a smaller span of control means that managers have a limited number of direct reports, while a larger span of control means that managers oversee a larger number of subordinates.

Question 20

The goal of any restructuring initiative should be to increase the value and the long-term health of the organization.

Accepted Answer

The goal of any restructuring initiative is to improve the organization's value and long-term health. This can be achieved by making changes to the organization's structure, processes, and operations, in order to increase efficiency, productivity, profitability, and competitiveness. However, restructuring should not be done at the cost of employees, customers, or other stakeholders, as this could damage the organization's reputation and relationships.

Quiz 7: Entrepreneurship and Forms of Business Ownership