As an Organization Grows and Changes Its Strategy, All of the Following

question 13

Multiple Choice

As an organization grows and changes its strategy, all of the following can occur with a functional structure, except:

• A)Functional managers become less effective because they perceive problems only from the narrow perspective of their department
• B)Communication between managers of different departments becomes difficult
• C)Efficiency is enhanced
• D)Functional managers can lose sight of organizational goals
• E)Coordination becomes difficult when managers are responsible for several different products

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Definitions:

Public

Pertaining to or involving the affairs of the community as a whole, often relating to government or public companies accessible to all people.

Semistrong-Form Efficient

A market hypothesis stating that share prices incorporate all publicly available information, making it impossible to consistently achieve higher returns.

Weak-Form Efficient

A market hypothesis suggesting that all past prices of stock are reflected in the current price, hence historical data cannot be used to predict future prices.

Strong-Form Efficient

A hypothesis that states all information, both public and private, is completely accounted for in stock prices, and that no investor can achieve consistently higher returns.