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A horizontal reporting structure is characterized by its emphasis on collaboration and communication across various levels and departments, rather than strictly adhering to a top-down hierarchy. In a horizontal structure, individuals at similar levels within the organization interact more freely and collaboratively, which contrasts sharply with traditional hierarchical models where communication tends to follow a predetermined chain of command.

This type of structure is designed to facilitate teamwork and flexibility, allowing for quicker decision-making and more agile responses to changes in the business environment. It fosters an environment where employees feel empowered to share ideas and contribute to discussions without the constraints often found in more hierarchical organizations, thus enhancing collective problem-solving and innovation.

The other options focus on aspects that do not capture the essence of a horizontal structure. Strict hierarchical communication and top-down approaches are hallmarks of more traditional organizational models, while references to large teams or interdepartmental competition do not specifically define the characteristics of a horizontal reporting structure.