Which of the Following Statements Is True About Functional Organization

question 26

Multiple Choice

Which of the following statements is True about functional organization structure?

• A) Small companies experiencing rapid growth are the only organizations to benefit from a functional structure.
• B) One of the main disadvantages of the functional structure is the lack of work specialization.
• C) Functional structures are extremely efficient when the organization as a whole has a relatively wide focus.
• D) One of the main advantages of the functional structure is that it encourages communication across functions.
• E) Functional structures are extremely efficient when the organization has fewer product lines or services.

Comprehend the concept of job satisfaction and its significance.

Understand the use and objectives of virtual teams.

Recognize the importance of gender diversity in enhancing team productivity.

Explain the concept and application of 360-degree feedback in performance appraisal.

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Definitions:

Contribution Margin

A financial metric that represents the amount of revenue from sales that exceeds variable costs, contributing towards covering fixed costs and profit.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific period, before any deductions for expenses.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level.

Manufacturing Costs

The total expense involved in the manufacturing process, including direct materials, direct labor, and overhead costs.