Question

Because entrepreneurial ventures typically are less complex than larger corporations, do they require a formal organizational structure?

1) True
2) False

Answer 1

Entrepreneurial ventures typically do not require a formal organizational structure due to their smaller size and complexity.

Step-by-step explanation:

Entrepreneurial ventures typically do not require a formal organizational structure because they are often small and less complex than larger corporations. In a sole proprietorship, for example, the business is owned and operated by one person, so there is no need for a formal structure. Similarly, partnerships and some startups can operate without a formal structure.