Which of the Following Examples Illustrates a Functional Structure

question 21

Multiple Choice

Which of the following examples illustrates a functional structure?

• A) Linda's Pet Grooming has eight employees that all report to Linda.
• B) Rio Riffic has a hydraulics division, a PVC division, and a fixtures division.
• C) AB Aeronautics has a private division, a commercial division, and a government division.
• D) BG Limited has a Pacific Northwest division, a Midwest division, and a Northeast Division.
• E) Handy Homes has a financial department, a production department, and a sales department.

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Definitions:

Total Revenue

A financial metric indicating the overall income earned by a business through the provision of goods and services.

Average Revenue

The amount of revenue generated per unit of a product sold, calculated by dividing total revenue by the number of units sold.

Total Revenue Curve

A graphical representation showing how total income from sales changes at different levels of output in a company's operations.

Pure Monopolist's Demand Curve

Illustrates the relationship between price and quantity demanded for a monopolist, who is the sole provider of a product or service, typically showing a downward slope.