Which of the Following Is an Advantage of a Functional

question 151

Multiple Choice

Which of the following is an advantage of a functional structure?

• A) Functional areas get approval from top management for a variety of decisions.
• B) Expertise develops within each function.
• C) No single function is responsible for overall company performance.
• D) Conflicts between functional areas may arise.
• E) None of these are correct.

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Definitions:

Cournot Duopolists

Firms in a duopoly market structure, where two companies dominate, that decide on their output level assuming the other's output as given, under Cournot competition.

Demand Curve

Illustrates the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at each price level.

Total Costs

The combined total of fixed and variable costs involved in the manufacturing of goods or services.

Daily Profit

The financial gain a business makes in a single day, calculated by subtracting total expenses from total revenue for that day.