Functional Structures Organize Activities Around the Mission-Critical Activities or Processes

question 29

True/False

Functional structures organize activities around the mission-critical activities or processes of the organization and are the most prevalent structures for single product/service and narrowly focused organizations.

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Definitions:

Wholesale Division

A division of a company that sells goods in large quantities to retailers, other distributors, or sometimes directly to consumers.

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Break-even Sales

The amount of revenue needed to cover both fixed and variable costs, resulting in neither profit nor loss.

Foreign Division

A segment of a business that operates in a country other than the company's home country, handling operations outside the domestic sphere.