One Problem with a Functional Structure Is That

question 161

Multiple Choice

One problem with a functional structure is that:

• A)it is more difficult to directly supervise employees within each department.
• B)it emphasizes subunit goals more than organizational goals.
• C)it makes it difficult to permit greater specialization of skills.
• D)it prevents companies from creating economies of scale in their pool of talent.
• E)employees have difficulty creating career paths within their area of knowledge.

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Definitions:

Current Assets

Resources anticipated to be cashed in, disposed of, or utilized within a year or the standard operating period of the company.

Adjusted Trial Balance

An adjusted trial balance is a list of all account titles and balances after adjustments have been made for accruals, deferrals, and other adjustments, ensuring the accounts are balanced before preparing financial statements.

Total Liabilities

The sum of all financial obligations a company owes to external parties, including loans, accounts payable, and mortgages.

Closing Process

The closing process in accounting involves summarizing all revenues and expenses for the period and transferring the balances to the owner's equity account to prepare for the next accounting period.