ACCA Applied Knowledge · Business and Technology · Business organisational structure
A small business owner personally takes all key decisions, and a handful of staff report directly to her with little formal structure. Which structure is this?
This is an entrepreneurial structure. Power and decision-making are concentrated in the owner, with staff reporting directly to her and very little formal hierarchy or departmentation, which is typical of small, young businesses.
- AEntrepreneurial structureCorrect
- BDivisional structure
- CMatrix structure
Explanation
An entrepreneurial structure is centralised around the owner who makes the decisions, with few formal rules. Divisional and matrix structures need multiple units or dual reporting, which are not described.
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