What Is a Weakness of a Simple Structure

question 56

Multiple Choice

What is a weakness of a simple structure?

• A)Duplication of activities and resources increases costs and reduces efficiency.
• B)Functional specialists become insulated and have little understanding of what other units are doing.
• C)Pursuit of functional goals can cause managers to lose sight of what is best for the overall organization.
• D)Reliance on a single person is risky.

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Definitions:

Implicit Interest

The interest represented by the difference between the cash price of a product and the amount financed over time, not directly stated as an interest rate.

Face Value

The nominal or dollar value of a security stated by the issuer, which is the amount paid back to the holder at maturity.

Zero-Coupon Bond

A type of bond that does not pay periodic interest payments and is sold at a discount from its face value, with the full face value being paid at maturity.

Face Value

The nominal value or dollar value of a security stated by the issuer.