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Which kind of firm is a plain line organization best suited to?
AA small, entrepreneurial firm with a simple design
BA multinational firm running in fifty countries
CA research laboratory of highly qualified experts
DA firm whose work is done wholly by outside vendors
Answer & Solution
Correct answer: A. A small, entrepreneurial firm with a simple design
1. The line organization has a simple design and gives managers broad control.
2. That combination suits small, entrepreneurial firms.
3. As an organization grows and becomes more complex, staff positions have to be added to the design.
4. Large multinational and expert-heavy organizations therefore outgrow the plain line form.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.1 Line-and-Staff Organization_
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