A company is likely to use a line organization when:
A)Management wants to use various marketing specialists.
B)The market consists of quite different groups of customers.
C)The company is small and sells a few related products.
D)Management believes in a policy of decentralization.
E)The sales force is large.

Question

Quizplus · Accepted Answer

A line organization is suitable for a small company that sells a few related products. In this type of organization, there is a direct line of authority from the top management to the lower level employees. This structure is less complex and easy to maintain with a small workforce. Moreover, in a company with a few products, the decision-making process is relatively straightforward, and centralized decision making is effective. Therefore, a line organization is an ideal choice for such companies. None of the other options listed would be determining factors for a line organization.

A Company Is Likely to Use a Line Organization When