Profit-driven organisations must have a formal structure to be efficient.Question 6Select one:a.Falseb.True

Selection and Justification

1. Understanding the Statement: The statement asserts that profit-driven organizations require a formal structure in order to operate efficiently.

2. Evaluation of Options:

   • a. False: This option suggests that a formal structure is not necessary for efficiency in profit-driven organizations.
   • b. True: This option supports the notion that a formal structure is essential for the efficiency of such organizations.

3. Analysis:

   • Profit-driven organizations often benefit from a formal structure as it provides clear hierarchies, defined roles, and standardized procedures, which can streamline operations and improve efficiency.
   • However, some organizations may thrive in less formal environments where flexibility and innovation are prioritized, leading them to operate efficiently without a rigid structure.

4. Conclusion: While there can be exceptions, generally, a formal structure is recognized to enhance operational efficiency in profit-driven organizations.

Final Answer

b. True