Which statement best describes a simple structure?

Prepare for the CIMA Managing Finance in a Digital World (E1) Exam. Use multiple choice questions and study aids to enhance your knowledge. Get exam-ready with our insights and tips!

Multiple Choice

Which statement best describes a simple structure?

Explanation:
Simple structure centers on centralized control with little formalization. The top leader makes most decisions, and they supervise directly, with few rules, few defined roles, and a very flat hierarchy. This is exactly what the statement describing the strategic apex dominating, no formal structure, and direct supervision conveys. Other descriptions fit different designs: relying on professional expertise points to professionals working with autonomy, a matrix structure brings multiple reporting lines, and many independent business units indicate a multi-unit or divisional setup rather than a single flat arrangement.

Simple structure centers on centralized control with little formalization. The top leader makes most decisions, and they supervise directly, with few rules, few defined roles, and a very flat hierarchy. This is exactly what the statement describing the strategic apex dominating, no formal structure, and direct supervision conveys. Other descriptions fit different designs: relying on professional expertise points to professionals working with autonomy, a matrix structure brings multiple reporting lines, and many independent business units indicate a multi-unit or divisional setup rather than a single flat arrangement.

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