Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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What is typically the primary driver for organizations using an adhocracy structure?

Market stability
Research and Development
Established processes
Cost control

The correct answer is: Research and Development

An adhocracy structure is primarily driven by the need for flexibility and innovation, which are crucial in environments characterized by rapid change and uncertainty. This organizational form emphasizes the importance of creativity and ideation, making research and development a core function. In an adhocracy, teams are often formed to address specific projects or challenges, and employees are encouraged to collaborate and experiment without the constraints of established hierarchies or processes. This fosters a culture where new ideas can be developed quickly, allowing organizations to adapt and thrive in competitive markets. In contrast, the other options reflect more traditional organizational drivers. Market stability typically benefits from more stable and hierarchical structures, while established processes and cost control are critical in environments where efficiency and predictability are prioritized rather than innovation.