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:

Sole Benefit

A principle ensuring actions or decisions, especially in fiduciary contexts, are made with the exclusive advantage of the beneficiary in mind.

Department

A department refers to a distinct area, division, or branch of an organization with specific responsibilities and functions.

Profit Center

A segment or division within a company for which direct revenue and expenses are calculated, often treated as its own business for assessing profitability.

Investment Center

A division or unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated on its profitability and return on investment.