BMF – May 2017 – L1 – SA – Q1 – Business and Organizational Structures and Choices

Identification of the most suitable organizational structure for a business in its early stage.

Question

Which of the following organizational structures is MOST appropriate for a business in its early stage of life?

A. Functional structure
B. Matrix structure
C. Divisional structure
D. Entrepreneurial structure
E. Virtual structure

Answer

Answer:

D. Entrepreneurial structure

Explanation:

An entrepreneurial structure is most appropriate for a business in its early stage because it is typically small, flexible, and characterized by a centralized decision-making process usually led by the founder or owner. This structure allows for quick decision-making and adaptability, which are essential for new businesses navigating initial growth phases.

Tags: Early-Stage Business, Entrepreneurial Structure, Organizational Structure
Level: Level 1

Topic: Business and Organizational Structures and Choices
Series: MAY 2017

Uploader: Kwame Aikins