Which of the Following Advantages Does a Functional Organizational Structure

question 41

Multiple Choice

Which of the following advantages does a functional organizational structure offer a company?

• A) Diversification of activities leading to greater productivity
• B) Lesser communication problems
• C) Reduction in manufacturing costs and increase in operational flexibility
• D) Ease in gauging the contribution of products to overall profitability
• E) Faster servicing of customers

---

Definitions:

Large Stock Dividend

A distribution of a substantial number of shares to a company's shareholders, often used to conserve cash while still rewarding investors.

Market Value

Market value is the current price at which an asset or service can be bought or sold in the market.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn reduces the price per share.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect its market value.