One Problem with a Functional Structure Is That

question 161

Multiple Choice

One problem with a functional structure is that

• A)employees have difficulty creating career paths within their area of knowledge.
• B)it is more difficult to directly supervise employees within each department.
• C)it makes it difficult to permit greater specialization of skills.
• D)it prevents companies from creating economies of scale in their pool of talent.
• E)it emphasizes subunit goals more than organizational goals.

---

Definitions:

Partnerships

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Deed.

Voting Rights

Legal rights established to protect individuals' abilities to participate in the electoral process, ensuring their votes are cast and counted accurately.

Classes of Partners

This term refers to the different roles or types of partners within a partnership, such as general partners, who have unlimited liability, and limited partners, who have liability restricted to their investment.

Implied Authority

Authority that is not explicitly defined but is assumed to be granted as part of an agent's role or duties.