JAMB Commerce 1995 Question 49

Question 49

Business Management

A firm's organizational structure would change if

  1. A.one of the major partners dies
  2. B.there is excessive competition
  3. C.there is seasonal variation in demand
  4. D.the scope of business operation changes.
Show the answer and explanation

Answer: D (the scope of business operation changes.)

Explanation

The structure is built around what the firm does; if its scope of operation grows or changes, the structure must change too.