A Functional Structure Is Recommended When a Firm

question 39

Multiple Choice

A functional structure is recommended when a firm

• A) has a broad focus in terms of its product/service offerings.
• B) has a low level of diversification.
• C) has a low degree of specialization.
• D) diversifies into different product lines and geographies.

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Definitions:

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Fair Insurance Policy

An insurance contract that is both equitable to the insurer and insured, ensuring that the terms and conditions are just and reasonable to all parties involved.

Premium

The amount paid periodically to the insurer by the insured for covering his risk.

Expected Income

The amount of money an individual or entity anticipates earning over a certain period.