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TRUE/ FALSE QUESTIONS (2 Points Each) 16) Organizing by geographic area is most useful when customers in a particular area are culturally different from those the firm generally faces. 17) Sales, production and purchasing are among the staff activities 18) Line activities directly affect firm's p pofits and serve to directly accomplish firm's purpose and objectives 19) The underlying assumption of organizing by business function is that firms using this organization scheme believe each product market responds uniquely, thus needs separate marketing plan, separate marketing mix etc. 20) If a firm organizes by business function it can respond quickly to unique or changing market conditions 21) Uine people have the authority to make decisions. 22) Under decentralized decision making all the decision-making authority is held by a few top executives who become involved in every decision, regardless of its importance 23) Firm's purpose and objective are defined under vision statement 24) Return on invested capital (ROIC) is the best measure of long - fun efficiency and effectiveness of a firm. 25) One disadvantage of organizing by geographic area is that it reduces central management's control over each business unit, less operating efficiency 26) Firms organizing by business function believe each product market responds uniquely, thus needs separate marketing plan, separate marketing mix etc