What Are the Advantages and Disadvantages of a Functional Structure

question 37

Essay

What are the advantages and disadvantages of a functional structure? Compare them with those of a divisional structure.

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Definitions:

Business Relationship

A connection between individuals or entities involved in business activities, focusing on commercial transactions, partnerships, or agreements.

Illegal Interference

Unauthorized or unlawful meddling or involvement in the affairs or property of others, often resulting in harm or damage.

Diminishing Returns

A rephrased definition: The principle stating that successive increases in inputs for production result in gradually decreasing increments in output.

Short Run

A period in which at least one of a firm's inputs is fixed and cannot be changed, while others may be varied to adjust production levels.