A Disadvantage of the Traditional Functional Approach to Departmentalization Is

question 117

Multiple Choice

A disadvantage of the traditional functional approach to departmentalization is that

• A) employees may care more about the company as a whole than their respective departments.
• B) the approach makes managers generalists, not specialists.
• C) people may pay more attention to customer satisfaction than to functional tasks.
• D) communication between functions may fall off due to conflicts.
• E) the structure limits functional differentiation.

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Definitions:

Accounts Payable

This refers to the amounts owed by a company for goods or services that have been received but not yet paid for.

Cash Dividends

Cash dividends refer to the distribution of a company's earnings to its shareholders, usually in the form of cash.

Common Stock

A type of equity security representing ownership in a corporation, with holders having voting rights and potentially receiving dividends.

Financing Activity

Activities that result in changes in the size and composition of the equity capital or borrowings of a company.