Which of the Following Is a Common Disadvantage Inherent in Product,customer,and

question 91

Multiple Choice

Which of the following is a common disadvantage inherent in product,customer,and location departmentalization?

• A) Decision making is slowed.
• B) Managers are unable to delegate as much.
• C) It is difficult to pinpoint the cause of failures.
• D) The organization tends to become more centralized.
• E) Administrative costs tend to rise due to an increase in the size of staff.

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Definitions:

Profitability Numbers

Financial metrics used to assess the degree to which a company generates profit from its operations.

Profitability

The financial gain made by a business, calculated as total revenues minus total costs.

Advertising

is a marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service, or idea.

Positive Gain

An increase in value or beneficial results obtained from a certain action or investment.