A company is likely to use a line organization when:
A)The company sells a variety of products.
B)The company's market is national.
C)The president wants to stimulate a policy of decentralization.
D)The company and the sales force is small.
E)Management wants to use various marketing specialists.

Question

Quizplus · Accepted Answer

A line organization is a type of organizational structure in which decisions flow in a straight line from the top, down to the bottom of the organization. This structure is best suited for small companies with a simple organizational structure and limited product/service offerings. Therefore, the best choice is D as it states that the company and the sales force is small.

A Company Is Likely to Use a Line Organization When