Accounting Multiple Choice Question – 19 July 2024

In terms of structure, Alex plc is a wide, flat organisation.

Which THREE of the following characteristics is the company most likely to exhibit?

• A Greater need to delegate
• B Higher administration and overhead costs
• C Many opportunities for promotion
• D Better communication between the strategic apex and operating core
• E Large spans of control
• F Slow decision making

Select ONE answer:

1. ABC
2. ABD
3. ABE
4. ABF

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct-A wide, tall organisation implies looking after many subordinates, so delegation will be called upon frequently (A). The vertical flow of information between the top and bottom of the company follows a shorter, more efficient route in a wide, flat organisation (D), so communication is likely to be improved. Looking after many employees implies large spans of control (E). The features you would expect to see in a tall narrow organisation are higher administration and overhead costs(B)to support the many levels within the structure; many opportunities for promotion (C) because there are more rungs in the ladder to the top; and slow decision-making (F) because the management structure requires more co-ordination and consultation before decisions are taken.

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