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:

Return On Investment (ROI)

A financial metric used to evaluate the efficiency of an investment, calculated as the profit earned from an investment divided by its cost.

Operating Assets

Assets such as property, plant, and equipment used in the daily operations of a business to generate revenue.

Turnover

The total sales made by a business in a specific period, or the rate at which employees leave and are replaced within a company.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency of an investment, calculated by dividing the benefit (return) of an investment by its cost.