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:
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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.