Organization Structure

 1. Which of the following is not a type of organizational structure?

a) Functional

b) Divisional

c) Matrix

d) Horizontal

Answer: d) Horizontal

2. The line organizational structure is characterized by:

a) Decentralized authority

b) Clear chain of command

c) Flexible roles

d) Matrix hierarchy

Answer: b) Clear chain of command

3. Which structure combines functional and product departmentalization?

a) Line

b) Divisional

c) Matrix

d) Project

Answer: c) Matrix

4. In which structure do employees report to two managers?

a) Line

b) Matrix

c) Functional

d) Team-based

Answer: b) Matrix

5. Functional structure is most suitable for organizations that:

a) Produce a variety of unrelated products

b) Have a single product line

c) Operate in diverse markets

d) Require high decentralization

Answer: b) Have a single product line

6. Which type of structure is best for quick decision-making?

a) Line

b) Functional

c) Matrix

d) Network

Answer: a) Line

7. Span of control refers to:

a) Number of divisions in an organization

b) Number of subordinates a manager can effectively manage

c) Degree of formalization

d) Level of centralization

Answer: b) Number of subordinates a manager can effectively manage

8. Delegation of authority means:

a) Abandoning responsibility

b) Assigning tasks to subordinates

c) Supervising employees

d) Training employees

Answer: b) Assigning tasks to subordinates

9. Which structure focuses on geographic locations or customer groups?

a) Functional

b) Matrix

c) Divisional

d) Project-based

Answer: c) Divisional

10. Centralization means:

a) Power is distributed

b) Power is held at the top

c) No hierarchy

d) Full employee autonomy

Answer: b) Power is held at the top

11. Decentralization results in:

a) Delayed decisions

b) Centralized power

c) Local-level decision-making

d) Reduced flexibility

Answer: c) Local-level decision-making

12. Which structure promotes innovation and flexibility?

a) Functional

b) Line

c) Project-based

d) Bureaucratic

Answer: c) Project-based

13. Unity of command principle states that:

a) Employees should report to two managers

b) Employees must have freedom

c) Employees should report to only one manager

d) Managers must report to employees

Answer: c) Employees should report to only one manager

14. Which of the following is a disadvantage of matrix structure?

a) Inflexibility

b) High cost

c) Dual authority

d) Clear communication

Answer: c) Dual authority

15. Which structure is common in large multinational corporations?

a) Functional

b) Line

c) Divisional

d) Team-based

Answer: c) Divisional

16. Formal organization is characterized by:

a) Personal relationships

b) Informal communication

c) Defined hierarchy

d) Unofficial roles

Answer: c) Defined hierarchy

17. Which organization structure allows the fastest response to change?

a) Functional

b) Line

c) Project-based

d) Bureaucratic

Answer: c) Project-based

18. An advantage of functional structure is:

a) Duplication of efforts

b) Clear role definition

c) Slow decision-making

d) Conflict among units

Answer: b) Clear role definition

19. A flat organization has:

a) Many levels of management

b) Few levels of management

c) No structure

d) Centralized decision-making

Answer: b) Few levels of management

20. Departmentation by product is best suited for:

a) Similar products

b) Mass production

c) Diverse product lines

d) Public sector

Answer: c) Diverse product lines