An Organization Designed by Function Has All the Following Characteristics

question 52

Multiple Choice

An organization designed by function has all the following characteristics except

• A) The external environment is stable with little uncertainty.
• B) It has few competitors.
• C) The strategy is to produce a few products for a well-defined market.
• D) The technical process is nonroutine and highly interdependent.

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Definitions:

Percentage Change

A mathematical calculation that indicates the degree of change over time, representing the difference between an old and new value as a percentage of the old value.

Traceable Fixed Expense

A fixed cost that can be directly linked to a specific segment of a business and would disappear if the segment did not exist.

Net Operating Income

The profit generated from a company's normal business operations, excluding income from investments and other secondary sources.

Price Decrease

A reduction in the selling price of goods or services, often used as a strategy to boost sales volumes or remain competitive.