Concept:
Memory organization is commonly represented in the form:
\[
\text{Number of Words} \times \text{Bits per Word}
\]
The first number indicates the total number of addressable memory locations, while the second number indicates the size of each location in bits.
Step-by-Step Evaluation:
• Interpret the first value:
The number 16 indicates that there are 16 addressable memory words.
• Interpret the second value:
The number 8 indicates that each word stores 8 bits.
• Combine the interpretation:
Therefore, the memory chip contains 16 separate memory locations, each capable of storing 8 bits.
Conclusion:
A memory organization of $16 \times 8$ means 16 words of 8 bits each. Hence, option (C) is correct.