Question

An M-Form organization organizes and manages economic tasks on a sectoral rather than a regional basis.

True

False

In European countries, stock exchanges and securities commissions have stricter laws against insider trading than do those in Anglo-Saxon countries

True

False

Answer 1

1.False

Decentralized organizations or M - Form organizations delegate decision-making and operational responsibilities to the managers of each segment of the organization. (Segments are often called divisions or subunits.) For example, universities are often segmented by discipline with one manager, or dean, responsible for each discipline (physical education, social sciences, business, etc.). Retail companies are often segmented by region, with one manager responsible for each region. Service companies are often segmented by service category, with one manager responsible for each category (e.g., an accounting firm divided into audit and tax).

2. False

In US the managers and directors are subject to blackout periods prior to public disclosure of information. This is the period during which they cannot buy or sell shares. The insider stock transaction must be reported to Securities Exchange Commission for publication whereas in Europe there are very less restrictions on Insider trading.