The Biggest Weakness of a Functional Structure Is That

question 17

Multiple Choice

The biggest weakness of a functional structure is that:

• A)it is not efficient when the organization as a whole has a relatively narrow focus.
• B)it is not efficient when the organization has fewer product lines or services.
• C)it cannot operate efficiently in a stable environment.
• D)employees don't communicate as well across functions as they do within functions.
• E)it decreases efficiency due to a high degree of work specialization.

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Definitions:

Caveat Emptor

The legal concept of “let the buyer beware” that was pervasive in the American business culture prior to the 1960s.

Multinational Firm

A company that conducts business and has facilities and other assets in at least one country other than its home country.

Transnational Firm

A company that operates across national borders, managing production or service facilities in more than one country.

International Firm

A business that engages in commercial transactions across national borders.