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.

---

Definitions:

Issued Shares

Shares of a company's stock that have been allocated and are currently owned by shareholders.

Preference Shares

A type of stock that provides shareholders with prioritized dividend payments and, in some cases, preferential treatment in asset distribution upon the company's liquidation.

Outstanding Shares

The total number of shares of stock that are currently owned by shareholders, including shares held by institutional investors and restricted shares owned by company insiders.

Statutory Close Corporation Supplement

A legal provision that allows a closely held corporation to operate with fewer formalities and more flexibility than is typical under corporate law.