Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

An effective structure will result in increased .................... of the enterprise.

Options:

Profitability

Expansion cost of company

Operating cost

Selling price of product

Correct Answer:

Profitability

Explanation:

The correct answer is option 1- Profitability.

Organisation structure is the outcome of the organising process. An effective structure will result in increased profitability of the enterprise. The need for an adequate organisation structure is felt by an enterprise whenever it grows in size or complexity. It is only those enterprises which do not focus on growth that can maintain a particular structure for a long period of time.