What Is a Weakness of a Simple Structure

question 56

Multiple Choice

What is a weakness of a simple structure?

• A)Duplication of activities and resources increases costs and reduces efficiency.
• B)Functional specialists become insulated and have little understanding of what other units are doing.
• C)Pursuit of functional goals can cause managers to lose sight of what is best for the overall organization.
• D)Reliance on a single person is risky.

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Definitions:

Market Rate

The prevailing interest rate or price available in the marketplace for goods, services, or securities.

Annual Dividend

The total amount of dividends a company pays out to its shareholders in one year.

Annual Dividend

The total dividend paid by a company to its shareholders in a year, often divided into quarterly payments.

Required Rate

The minimum annual percentage return that an investment must yield to an investor to consider it a viable option.