If a New Company Desires to Departmentalize in a Way

question 17

Multiple Choice

If a new company desires to departmentalize in a way that will simplify supervision and facilitate coordination, it will most likely departmentalize by

• A) product.
• B) location.
• C) worker skill level.
• D) customer.
• E) function.

---

Definitions:

Employment Contract

A legal agreement between an employer and an employee that outlines the terms of employment, including duties, duration, and compensation.

Binding

A term referencing agreements or legal decisions that are enforceable and must be adhered to by the parties involved.

Fiduciary Duty

The legal obligation of one party to act in the best interest of another when entrusted with care of money or property.

Utmost Good Faith

A legal doctrine requiring all parties to a contract, especially in insurance, to act honestly and disclose all relevant facts.