Which of the Following Is an Advantage of Product Departmentalization

question 87

Multiple Choice

Which of the following is an advantage of product departmentalization?

• A) It allows managers and workers to specialize in one area of expertise.
• B) It makes cross-department coordination less problematic.
• C) It reduces costs by reducing duplication.
• D) It results in slower decision making by managers and workers.

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Definitions:

Potential Investments

Opportunities for allocating resources with the expectation of generating a future financial return or benefit.

Loanable Funds

Represents the money available for borrowing in the financial markets, determined by savings and the supply of credit.

Equilibrium Interest Rate

The interest rate at which the demand for money balances equals the supply of money in circulation, leading to a stable economic environment.

Loanable Funds

A term in economics referring to all the money available for lending by banks or other financial institutions, influenced by savings and investments.