Final answer:
The characteristics of a simple business structure include a flat hierarchy, basic work specialization differences, and low formalization, which is commonly found in sole proprietorships, offering ease of management with full owner control.
Step-by-step explanation:
The characteristics of a simple business structure are typically associated with a flat organizational hierarchy, very basic differences in work specialization, and low formalization.
This means that there are fewer layers of management, roles are not extensively specialized, and there are minimal formal procedures and rules regulating employee behavior. Simple business structures are often seen in sole proprietorships where the owner makes most decisions and there are fewer employees, thus reducing the need for complex managerial systems.
A sole proprietorship is the most common form of business organization and is easy to start and manage. The owner has full control and receives all profits, but also assumes all risks and liabilities. There are no special taxes, only income tax on the business revenue. The simplicity of this structure works well for small businesses with limited employees and capital.