A Disadvantage of Functional Departmentalization Is That Administrative Costs Rise

question 103

True/False

A disadvantage of functional departmentalization is that administrative costs rise because each department must have its own functional specialists for areas such as market research and financial analysis.

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Definitions:

Above-Equilibrium Wage

A wage rate set above the market equilibrium, where the quantity of labor supplied exceeds the quantity of labor demanded, often leading to unemployment.

Cartel

An association of independent businesses organized to control production, pricing, and marketing of goods to restrict competition.

Labor

The human effort, both physical and mental, used in the production of goods and services.

Minimum Wage

The lowest legally permissible hourly wage that employers can pay their workers, intended to protect employees from unduly low pay.