Which of the Following Is Considered to Be a Disadvantage

question 214

Multiple Choice

Which of the following is considered to be a disadvantage of functional departmentalization?

• A) There may be a lack of communication among the different departments.
• B) Employees must develop skills in depth.
• C) The company must achieve economies of scale.
• D) Top management has to direct and control department activities.

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Definitions:

Fixed Input(s)

Factors of production, such as land or machinery, that cannot be adjusted in the short term.

Short Run

A time period during which at least one input is fixed and cannot be adjusted by a firm.

Diseconomies Of Scale

Occur when a company grows so large that the costs per unit increase. It is the opposite of economies of scale.

Long-Run Average Total Cost Curve

A graphical representation showing the lowest possible cost at which any given level of output can be produced in the long run.