Which one of the following types of organizations would benefit from a matrix structure?

A. Diverse independent businesses in a conglomerate
B. Organizations growing through merger and acquisition
C. Small companies with few plants and limited product or service diversity
D. Small, sophisticated service companies
✅ The correct answer is option D.
Small, sophisticated service companies one of the following types of organizations would benefit from a matrix structure. A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships – generally to both a functional manager and a product manager.

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