Question detail
Northline Gym serves small retailers while taking a loan; the case evidence includes capacity utilisation of ?4,669, sales of 664 units, and a 20% change in costs or demand. Which option best applies Explain how organisational structure may affect communication?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Organisational structures
Question
- A. Use organisational structure to judge break-even output, suppliers impact, and the business objective in Structures and communication.
- B. Give only a definition of Organisational structures without using the case evidence.
- C. Treat fixed and variable costs as identical and ignore the effect on suppliers.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use organisational structure to judge break-even output, suppliers impact, and the business objective in Structures and communication.
Explanation
This is the best-supported choice because Use organisational structure to judge break-even output, suppliers impact, and the business objective in Structures and communication. The case evidence gives ?6,169, 664 units, and 20%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the suppliers, or ignore the business objective.
Common mistake
Structures and communication common mistake 1
Giving a vague answer instead of directly addressing: Explain how organisational structure may affect communication..
Answer by clearly explaining how to explain how organisational structure may affect communication..
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