Which of the Following Is True About the Functional Structure

question 37

Multiple Choice

Which of the following is true about the functional structure?

• A) It allows employees to have direct contact with customers.
• B) It facilitates communication that takes place horizontally across functions.
• C) It provides organizations with a clear chain of command.
• D) It focuses primarily on helping employees meet customer expectations.

---

Definitions:

Production Budget

An estimate of the total number of units that must be produced in a given period to meet both sales and inventory needs.

Production Budget

A production budget is a financial plan that estimates the number of units to be produced to meet anticipated sales demand.

Sales Budget

A detailed projection of a company’s sales revenue for a certain period, often used as a basis for production, purchasing, and staffing plans.

Service Firm

A business that provides intangible products or services to customers, as opposed to selling physical goods.