Which of the Following Is a Disadvantage of a Functional

question 50

Multiple Choice

Which of the following is a disadvantage of a functional type of organizational structure?

• A) Differences in functional orientation may impede communication and coordination.
• B) Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas.
• C) Decision making is centralized at the top of the organization.
• D) Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.

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Definitions:

Monopolistically Competitive Industry

A market structure where many firms sell products that are similar but not identical, allowing for significant differentiation and non-price competition.

Perfectly Competitive Industry

An industry characterized by many small firms producing identical products where no single firm can influence the market price.

Advertising Expenditures

The amount of money spent on promoting products, services, or brands through various media channels.

Price Discrimination

A method of setting prices in which the same provider sells nearly the same goods or services at disparate prices in different markets.