Many small entrepreneurial firms don't have a deliberately planned organizational structure because ________
A) they are inefficient
B) small firms never need structure
C) the IRS prevents them from having a structure
D) one person does "everything"
Answer: D
Explanation: In most cases, small firms are not inefficient and they do require some kind of structure, though it may be a highly informal structure. The reason small firms tend not to have a deliberate structure is that one person (or a few people) tend to take care of all issues for the organization, making such structural categories as departmentalization unnecessary. This makes one person doing "everything" the correct response. Note that the IRS preventing them from having a structure is ruled out because the IRS has little or no influence on organizational structure.
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