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Strategic business unit (SBU) and holding company structures result from extensive


A) diversification.
B) vertical integration.
C) international expansion.
D) organizational flattening.

E) A) and B)
F) C) and D)

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According to author,Jeffrey Pfeffer,which of the following is not an advantage of teams?


A) Teams interact so closely and therefore coordination and integration becomes unnecessary.
B) Teams substitute peer-based control for hierarchical control of work.
C) Teams often develop more creative solutions because they share.
D) Teams permit the absorption of administrative tasks previously performed by specialists.

E) None of the above
F) All of the above

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According to author Jeffrey Pfeffer,the advantages of teams are that employees control themselves,develop more creative solutions to problems,and permit the absorption of administrative tasks previously performed by specialists.

A) True
B) False

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One of the disadvantages of divisional structure design is that they divide ________,________,and knowledge.They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities,share resources,and learn from each other.


A) land, buildings
B) assets, structures
C) people, resources
D) people, buildings

E) A) and C)
F) B) and C)

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A matrix organizational structure is characterized by a combination of the ________ structure and ________ structure.


A) functional; divisional
B) simple; functional
C) simple; divisional
D) holding-company; divisional

E) None of the above
F) B) and C)

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Which of the following is not a strategic risk of outsourcing?


A) loss of critical skills
B) loss of cross-functional skills
C) loss of control over a supplier
D) loss of nonvital functions

E) C) and D)
F) B) and C)

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