Which of the Following Is a Common Disadvantage Inherent in Product,customer,and

question 91

Multiple Choice

Which of the following is a common disadvantage inherent in product,customer,and location departmentalization?

• A) Decision making is slowed.
• B) Managers are unable to delegate as much.
• C) It is difficult to pinpoint the cause of failures.
• D) The organization tends to become more centralized.
• E) Administrative costs tend to rise due to an increase in the size of staff.

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Definitions:

Compensation

The total of all rewards provided to employees in return for their services, including salary, benefits, bonuses, and other forms of payment.

Conflicts of Interest

Situations where a person or organization could potentially benefit personally from their actions or influence, which might compete with their duties or the interests of their employer or clients.

Corporate Growth

The expansion of a company's market share, revenue, size, or production capabilities, often seen as a measure of success.

Economic Precepts

Basic principles or theories that guide the analysis and management of economic activities.