Which of the Following Is Considered to Be a Disadvantage

question 214

Multiple Choice

Which of the following is considered to be a disadvantage of functional departmentalization?

• A) There may be a lack of communication among the different departments.
• B) Employees must develop skills in depth.
• C) The company must achieve economies of scale.
• D) Top management has to direct and control department activities.

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Definitions:

Accounts Receivable

Outstanding payments from clients or customers to a company for delivered goods or services that remain unpaid.

Factoring Transaction

The process where a business sells its accounts receivable (invoices) to a third party (factor) at a discount, in exchange for immediate cash.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards designed to ensure consistency, fairness, and accuracy in financial reporting and accounting practices in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.