Final answer:
Larry's Auto Repair, led by its founder and supported by a small team, operates with an Entrepreneurial structure typical of a sole proprietorship where the owner is heavily involved in all aspects of the business. The correct option is D.
Step-by-step explanation:
Larry's Auto Repair is a small business where the founder, Larry, is involved in making strategic decisions and managing day-to-day operations. In this structure, Larry is supported by a small team composed of three mechanics and a financial secretary. Given the description of how Larry's Auto Repair operates, the small business exhibits characteristics of an Entrepreneurial structure.
An Entrepreneurial structure is often found in smaller businesses or startups where the owner plays a central role in all aspects of the business, including decision-making and operations. This type of structure is synonymous with a sole proprietorship, in which the owner and the business are legally the same entity and the owner is ultimately responsible for the business's debts and obligations.
It contrasts with Functional, Divisional, and Matrix structures which are commonly adopted by larger and more complex organizations that require a more elaborate hierarchy and specialized divisions or teams. Given Larry's hands-on role and the small size of his team, the Entrepreneurial structure fits his business most appropriately.