ExpertEasy1 markMultiple Choice
Syllabus B: Organisational structure, culture, governance and sustainabilitySyllabus BOrganizational Structure
ACCA · Question 34 · Syllabus B: Organisational structure, culture, governance and sustainability
Which of the following is a key characteristic of an entrepreneurial organizational structure?
Which of the following is a key characteristic of an entrepreneurial organizational structure?
Answer options:
A.
Highly centralized decision-making
B.
Extensive use of formal committees
C.
Strict departmentalization by function
How to approach this question
Think of a small startup where the boss makes all the calls.
Full Answer
A.Highly centralized decision-making✓ Correct
An entrepreneurial structure is typically flat, informal, and highly centralized, with the entrepreneur/owner retaining all major decision-making power.
Common mistakes
Assuming startups are decentralized because they are 'modern'. In reality, early-stage startups rely heavily on the founder.
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