Which of the Following Is a Potential Disadvantage of Functional

question 45

Multiple Choice

Which of the following is a potential disadvantage of functional departmentalizing?

• A) difficulty for employees to prioritize responsibilities
• B) lack of unity of command
• C) difficulty in coordinating between various functions
• D) difficulty in assigning blame or credit for the performance of a function
• E) lack of consistency in carrying out functions

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Definitions:

Merchandising Companies

Companies that purchase goods in a finished condition and sell them without further processing, making profit through the buying and selling of merchandise.

Service Companies

Businesses that provide intangible products or services to customers, as opposed to selling physical goods.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial health of a company's core business activities.

Gross Profit Margin

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.