Prolever Systems Is a Multidomestic Company That Is Undergoing Organizational

question 34

Multiple Choice

Prolever Systems is a multidomestic company that is undergoing organizational restructuring. Chris, the managing director, meets with the managers from various departments to decide the most suitable type of structure for the firm. The managers believe that a functional structure would work best for the firm. However, Chris is not convinced with the idea. Which of the following statements justifies Chris's viewpoint in this scenario?

• A) People belonging to each function will be unable to develop expertise.
• B) Coordinating with all the people who work on the same tasks will be difficult.
• C) Cross-functional interaction will be limited leading to slow response to market needs.
• D) Streamlining the vertical flow of knowledge within each functional unit will be restricted.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Inventories

The raw materials, work-in-process products, and finished goods considered part of a business's assets that are ready or will be ready for sale.

Taxes Payable

Liabilities owed to various governmental entities within the current fiscal period.

Bonds Outstanding

The total amount of bonds that are issued by a corporation or government entity and are currently in the hands of investors.