As new,small firms grow and mature,which structure are they likely to choose?

Question

Quizplus · Accepted Answer

As small firms grow and mature, they are likely to adopt a functional structure where different departments are created based on functions such as finance, marketing, operations, etc. This structure allows for efficient task specialization and easy supervision. It also helps in developing expertise within each unit and leads to better communication within the function. As the company grows larger, it may adopt a matrix structure to manage projects or product lines, but the functional structure is the most common choice for mid-sized firms.

As New,small Firms Grow and Mature,which Structure Are They Likely