Which of the Following Statements About Functional Departmentalization Is True

question 80

Multiple Choice

Which of the following statements about functional departmentalization is true?

• A)It allows work to be done by highly qualified specialists.
• B)It increases costs by reducing duplication.
• C)It complicates communication and coordination for departmental managers.
• D)It requires all functionally departmentalized companies to have the same functions.
• E)It eases out cross­department coordination.

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Definitions:

Capital Lease

A lease classified as a financial transaction where the lessee effectively buys an asset and finances it over the lease term.

Operating Lease

An agreement that permits the utilization of an asset without owning it, usually with a shorter duration than a finance lease.

Fair Value

What one would earn from selling an asset or what it would cost to shift a liability in a systematic operation with market actors on the appraisal date.

Guaranteed Residual Value

The predetermined value of a leased asset at the end of the lease term, guaranteed by the lessee or a third party.