Association of Chartered Certified Accountants (ACCA) Certification Practice Test

In a simple/entrepreneurial structure, decision-making is primarily?

1. Distributed among all levels of management

2. Retained at the strategic apex

3. Completed through committees and panels

4. Affected by a large hierarchy

The correct answer is: Retained at the strategic apex

In a simple or entrepreneurial structure, decision-making is primarily retained at the strategic apex. This is because such structures are typically characterized by a flat hierarchy, where the owner or a few top individuals hold significant authority and make the majority of the decisions. This concentrated control allows for quick decision-making and a direct approach to management, which is often essential for the agility of small businesses or startups. This design facilitates a streamlined operational process, as the decision-makers are usually the entrepreneurs themselves, who can make informed choices rapidly without needing to consult multiple layers of management or committees. This contrasts with larger, more complex organizations where decision-making may be more distributed or reliant on formal collective approaches.