PM
MBA 705 Chapter 10 Exam questions and answers with
complete solutions verified graded a++
Corporate True
restructuring seeks This is the definition of the term corporate
to improve restructuring.
efficiency and
performance
through such
actions as
realigning divisions
in the firm, reducing
the amount of cash
under the
discretion of senior
executives, and
acquiring or
divesting business
units.
A flat organization is False
composed of many A tall organization is composed of
hierarchical levels many hierarchical levels and narrow
and narrow spans of spans of control.
control
Horizontal structures True
have fewer This is the definition of the term horizontal
managerial levels structures.
1/
7
, 7/4/25, 9:59
PM
than vertical
structures.
In general, a False
functional structure In general, a functional structure tends
tends to be most to be most appropriate for defenders
appropriate for and low-cost businesses.
differentiatedbusiness
es.
True
Progressive firms restructure voluntarily when it
Corporate becomes clear that a change is
restructuring can be necessary, ideally before performance
voluntary or declines are substantial. However, firms
involuntary. that do not manage for value may
eventually be forced by outsiders to
restructure
involuntarily, a process that is usually more
costly.
Progressive firms False
restructure only Progressive firms restructure when it
when firm becomes clear that a change is
performance necessary— ideally before performance
declines. declines.
The formal means by A. organizational structure
which work is
2/
7