Question

When a company's output is consumed immediately and employees and customers interact directly, the firm uses and will tend to be flexible, informal, and decentralized?

Answer 1

The statement above is TRUE.
A company which produce a product that is consumed immediately usually have direct contact with customers. And in this kind of situation, the relationship between the customers and the company officials tend to be informal. The company tend to be flexible in their relationship with customers and the structure of such companies tends to be decentralized. Also, the company services tend to be dispersed and horizontal communication usually have preeminence over other type of communication.<span />

Answer 2

The given statement is true.

Further Explanation:

Flexible, informal, and decentralized system:

The flexible business structure tends to have informal by nature. This type of structure is easy to adapt to change and flexible in nature. The primary characteristic of a flexible system is that business policies are easy to change; employees have the decision and management related freedom. A major characteristic of flexible business is that it is decentralized. The authority is delegated at many levels. Various departments have the authority to take the decision without the approval of the higher authority.

Comment whether the statement is true or false:

The given statement is true. When a company’s output is consumed immediately without any chain, and the employees have direct interaction with the customer, then the business structure tends to be flexible, informal, and decentralized.  

The employees can directly interact with the customer and make the policies as per customer convenience. Therefore, it is flexible as the policies can be easily changed. The output is consumed immediately. It states that there is no specific formal structure for the supply of the goods. The authority is delegated to the employees who can change the policies as per the customer requirement. Therefore, the business structure is decentralized.  

Thus, the given statement is true.

Learn More:

1. Learn more about the resource management activity brainly.com/question/10700933
2. Learn more about the product information brainly.com/question/2134619
3. Learn more about the management characteristics brainly.com/question/10649225

Answer Details:

Grade: High School

Chapter: Centralization  

Subject: Business Studies

Keywords: company, output, consumed, immediately, employees, customers, interact, directly, firm, uses, will tend, flexible, informal, decentralized.