Why Does a Functional Structure Rely on a Flat Organizational

question 16

Multiple Choice

Why does a functional structure rely on a flat organizational structure?

• A) The work in the organization is centrally coordinated by the CEO.
• B) It allows for a higher degree of specialization and domain expertise.
• C) It allows for efficient bottom-up and top-down communication.
• D) It allows for the implementation of a differentiation strategy.

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Definitions:

Supplies Account

An account that tracks the cost of supplies consumed or on hand.

Adjusting Entry

An accounting record entry made at the conclusion of an accounting period to distribute income and expenses to the correct period.

Purchased

The act of acquiring goods or services in exchange for money, often recorded in accounting as an increase in assets or expenses.

Insurance Policy

A contract between an insurer and a policyholder specifying the claims which the insurer is legally required to pay in exchange for an upfront premium.