Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 146

Which of the following characteristics applies to an organization that adopts a flat structure?

Answer options

• A. The structure is dispersed geographically.
• B. The hierarchy levels are more numerous.
• C. The span of control is wide.
• D. The lower-level managers are encouraged to exercise creativity when solving problems.

Correct answer: C

Explanation

The correct answer, C, indicates that in a flat structure, managers oversee a larger number of employees, leading to a wide span of control. Option A is incorrect because a flat structure does not imply geographic dispersion. Option B is wrong as flat structures typically have fewer hierarchy levels, and option D, while true in some contexts, is not a defining characteristic of a flat structure.