What Is the Benefit of a Functional Structure

question 24

Multiple Choice

What is the benefit of a functional structure?

• A) Each division can operate more efficiently in a given business area.
• B) Employees become more engaged with the firm as a whole.
• C) Employees focus more on their functional areas.
• D) The firm can avoid duplicating activities.

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Definitions:

Total Purchase Costs

The aggregate amount of money spent on acquiring an asset, including the purchase price and all associated fees and expenses.

Commission Charges

Fees charged by brokers or agents for their service in facilitating a transaction, often a percentage of the sale value.

Total Cost

The complete amount of money spent on producing or acquiring a product or service, including all variable and fixed expenses.

Par Value

The face value of a bond or stock as stated by the issuing company.