Discuss Some of the Advantages of a Functional Structure Over

question 43

Essay

Discuss some of the advantages of a functional structure over the product or geographic structure.When is it necessary to adopt a geographic or product structure?

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Definitions:

Cost of Equity

The return a company is required to generate for its shareholders, often estimated using the Capital Asset Pricing Model (CAPM).

Market Price

The modern-day pricing for buying or selling an asset or service.

Beta

A gauge of the level of variability, or consistent risk, attached to a security or portfolio against the backdrop of the broader market.

Treasury Bills

Short-term government securities with maturities of one year or less, considered a safe and liquid investment.