One Problem with a Functional Structure Is That

question 71

Multiple Choice

One problem with a functional structure is that:

• A)it is more difficult to directly supervise employees within each department.
• B)it produces higher dysfunctional conflict and poorer coordination.
• C)it makes it difficult to permit greater specialization of skills.
• D)it prevents companies from creating economies of scale.
• E)employees have difficulty creating career paths within their area of knowledge.

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Definitions:

Risk-free Rate

The theoretical return on investment with no risk of financial loss, often represented by the yield of government bonds like U.S. Treasury bills.

Expected Market Rate

The anticipated rate of return that investors predict to receive from the market as a whole over a specific period.

Myopic Behavior

Short-sighted decision-making focusing on immediate benefits rather than considering long-term consequences, often seen in investment choices.

Mean-variance Optimizers

A mathematical process used in finance to construct an investment portfolio that aims to maximize returns for a given level of risk.