An Advantage of Functional Departmentalization Is That

question 119

Multiple Choice

An advantage of functional departmentalization is that

• A) managers care more about the company as a whole than just their departments.
• B) employees are able to focus exclusively on customer satisfaction.
• C) it encourages managers to become generalists.
• D) economies of scale can be realized.
• E) there is increased coordination between different functions.

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Definitions:

Market Price

The immediate rate at which an asset or service can be traded in a specific trading place.

Producer Surplus

The gap between what sellers are prepared to accept for a product or service and the real amount they end up getting.

Excess Quantity

The situation where the supply of a product exceeds the demand for it at a specific price point, leading to a surplus.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved.