PRC-3 · Chapter 3 · Question 37 of 70
A newly opened local café is run entirely by its founder. There is no formal middle management, no complex rulebooks, and the founder makes every single decision directly. What type of structure is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Entrepreneurial (Simple) structure
Explanation
An entrepreneurial structure is typically highly centralized, informal, and revolves around a single founder or owner who controls everything.
More Organization of Business MCQs
- Q39A national bank features 8 levels of management from the teller to the CEO. Because there are so many levels, each manager only supervises…
- Q40In a corporate handbook, an organization chart shows a solid line connecting the CEO to the VP of Marketing, the VP to the Regional…
- Q41At Delta Manufacturing, branch managers are not allowed to spend more than Rs. 5,000 without written permission from the CEO at…
- Q42What is a primary benefit of adopting a decentralized organizational structure?
- Q43A hotel chain decides to close its internal IT department and instead hires a specialized tech firm to manage its servers and networks for…