One Disadvantage of the Functional Structure Is That

question 36

Multiple Choice

One disadvantage of the functional structure is that

• A) career paths and professional development are limited.
• B) dual reporting relationships blur lines of authority.
• C) the CEO cannot coordinate and control the efforts of functional level employees.
• D) communication is difficult among organizational functions.

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Definitions:

Issue Price

The price at which new or existing securities are offered for sale to the public or the primary market.

Stockholders' Equity

Represents the equity interest of a company's shareholders, calculated as assets minus liabilities.

Statement Of Stockholders' Equity

A financial statement that shows the changes in the value of a company's equity or ownership interest over a specified period.

Paid-In Capital

Capital received from investors in exchange for stock, representing the funds that shareholders have invested in the company.