Ross and Tony, father and son, opened a large boutique named Tradus in Chicago. Being the owners of the business concern, they decide about the important matters. All the rest of the decisions like product, finance, marketing, and personnel are carried out by the department heads, who have to act according to Ross's and Tony's instructions and orders. Which of the following is true about Tradus?

A. It has a very tall organizational structure.

B. The degree of formalization is very low in the organization.

C. It has a centralized system of decision making.

D. It has a narrow span of control.

E. It has a matrix organizational structure.

Question

Clayton Mccarthy

Business

5 May, 16:43

Ross and Tony, father and son, opened a large boutique named Tradus in Chicago. Being the owners of the business concern, they decide about the important matters. All the rest of the decisions like product, finance, marketing, and personnel are carried out by the department heads, who have to act according to Ross's and Tony's instructions and orders. Which of the following is true about Tradus?

A. It has a very tall organizational structure.

B. The degree of formalization is very low in the organization.

C. It has a centralized system of decision making.

D. It has a narrow span of control.

E. It has a matrix organizational structure.

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Answers (1)

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Kc · Answer 1

C. It has a centralized system of decision making

Explanation:

The span of control determines the structure of the organization. In this case, all the major decision making is done by Ross and Tony and even further, the departmental heads have limited powers therefore, the power in this case is centralized.