Compared with Divisionalised Structures,functional Structures Are Known To

question 63

Multiple Choice

Compared with divisionalised structures,functional structures are known to:

• A) Create better economies of scale
• B) Be more responsive to local markets or clients
• C) Encourage employees to focus on the organisation's superordinate goals
• D) Reduce conflict and coordination problems across work units

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Definitions:

Diversified Away

Refers to the reduction of risk in a portfolio by investing in a variety of assets, thus minimizing the impact of any single investment's performance.

Firm-specific Risk

The risk associated with an individual company, which can be mitigated through diversification.

Beta

A metric used in finance to determine an investment's volatility or risk as compared to the overall market.

Portfolio Variance

A measure of the dispersion of returns of a portfolio, indicating the degree of investment risk.