Which of the Following Describes a Typical Functional Structure

question 2

Multiple Choice

Which of the following describes a typical functional structure?

• A) Employees tend to be specialists in the business functions important to that industry such as manufacturing, marketing, finance, and human resources.
• B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as specialists attempting to gain synergy among divisional activities.
• C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades.
• D) Employees have two or more superiors, a project manager and a functional manager.
• E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as specialists but with no attempt at gaining synergy among the divisions.

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Definitions:

Segment Profit or Loss

The financial performance of a distinct part of a company that engages in business activities from which it may earn revenues and incur expenses, resulting in its own net profit or loss.

External Customers

Individuals or entities that are not part of an organization but use or purchase its products or services.

Reconciliation

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement. It is a key accounting process.

Segment Profit Margin Analysis

The process of evaluating the profitability of different segments or divisions within a company.