A company's organizational structure is the hierarchy that defines its management and communications. The disadvantages of organizational structure include lopsided management lines, increased bureaucracy, slowed communications, and increased inflexibility.
<h3>What exactly is an organizational structure?</h3>
A system that defines how specific activities are directed in order to achieve an organization's goals is referred to as an organizational structure. Such activities include rules, roles, and responsibilities.
- Many of the problems with using a simple organizational structure revolve around the workload of the owner or the person at the top. If the owner of a company is required to approve every decision, he may become overworked.
- The three main organizational structures are hierarchical, sequential, and matrix.
Hence, the organizational structure of a company is the hierarchy that defines its management and communications. Organizational structure disadvantages include lopsided management lines, increased bureaucracy, slowed communications, and increased inflexibility.
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Answer:
Suppose a firm has been losing money and thus is not paying taxes, and this situation is expected to persist into the foreseeable future. In this case, the firm’s before-tax and after-tax costs of debt for purposes of calculating the WACC will both be equal to the interest rate on the firm’s currently outstanding debt, provided that debt was issued during the past 5 years.
Answer:
a. $26.67
b. 2.50%
Explanation:
a. Computation of the current value of the stock is given below:-
Price of stock ÷ Required rate of return - Growth rate
= $1.20 ÷ (0.07 - 0.025)
= $1.20 ÷ 0.045
= $26.67
b. Computation of capital gains yield on this stock is shown below:-
= Required rate - Dividend yield
= 7% - ($1.20 ÷ $26.67)
= 7% - 0.04499
= 2.50%
Answer:
As a result of the political unrest in Libya, the supply of oil would fall, As a result the supply curve would shift to the left. This would lead to fall in equilibrium quantity and a rise in price.
The increased demand for oil would shift the demand curve to the right. The equilibrium price and quantity would increase
Taking these two effects together, equilibrium price would rise and there would be an indeterminate effect on equilibrium quantity
Please check the attached image for a graph showing these shifts
b. As a result of the change in supply, supply would increase. This would increase equilibrium quantity and equilibrium price would fall. in addition with the increase in demand for oil, equilibrium quantity would rise and there would be an indeterminate effect on equilibrium quantity
Explanation:
