Which of the Following Is NOT a Strength of a Functional

question 1

Multiple Choice

Which of the following is NOT a strength of a functional organization structure?

• A) Allows economies of scale within functional departments.
• B) Is best with only one or a few products.
• C) Enables in-depth knowledge and skill development.
• D) Leads to customer satisfaction because product responsibility and contact points are clear.

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Definitions:

Investment Center

A division or unit within a company for which the manager has responsibility for and authority over the unit's revenues, costs, and investments.

Decentralized Units

Subdivisions within a larger organization that operate with a degree of autonomy, often making their own decisions and managing their own operations.

Authority

Authority refers to the power or right given to an individual or organization to make decisions, direct others, and enforce obedience.

Profit Margin

A financial metric indicating the percentage of income left over from revenues after accounting for costs and expenses.