Why Does a Functional Structure Rely on a Flat Organizational

question 16

Multiple Choice

Why does a functional structure rely on a flat organizational structure?

• A) The work in the organization is centrally coordinated by the CEO.
• B) It allows for a higher degree of specialization and domain expertise.
• C) It allows for efficient bottom-up and top-down communication.
• D) It allows for the implementation of a differentiation strategy.

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Definitions:

Administrative Expenses

Costs related to the general operation of a business, including salaries of executive staff, office supplies, and utility expenses, but not directly tied to production or sales.

Materials Requisition

A document or electronic form used to request materials needed for production from the storeroom or inventory management.

Storeroom

A room used for storing goods, materials, or supplies within a business or organization.

Finished Goods

Items that are fully manufactured and available for purchase by consumers.