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A Disadvantage of a Functional Organizational Structure Is That Teamwork

question 72

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A disadvantage of a functional organizational structure is that teamwork is emphasized, with much cross fertilization of ideas among functions.


Definitions:

Tax Burden

The total amount of taxes that an individual or business owes to the government, expressed as a percentage of income or revenue.

Interest Burden

The ratio of interest expenses to earnings before interest and taxes, indicating the proportion of a company's earnings consumed by interest payments.

Return On Sales

A financial ratio that calculates how efficiently a company turns sales into pretax profit.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.

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