ACCA Applied Knowledge · Business and Technology · Business organisational structure
A small start-up is run by its founder, who makes almost all decisions personally and controls activities through direct supervision. Which type of organisational structure does this best describe?
This is an entrepreneurial structure. Power is concentrated in the founder, who takes nearly all decisions and controls work through direct supervision. It is typical of small, young organisations and lacks the formal rules, dual reporting or autonomous units seen in bureaucratic, matrix or divisional structures.
- AEntrepreneurial structureCorrect
- BMatrix structure
- CDivisional structure
- DMachine bureaucracy
Explanation
An entrepreneurial structure centres on one person, usually the owner-founder, who takes the key decisions and supervises directly. A matrix has dual reporting lines, a divisional structure splits into semi-autonomous units, and a machine bureaucracy relies on formal rules and standardised processes, none of which fits the scenario.
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