Disadvantages of the Functional Design Include All of the Following

question 47

Multiple Choice

Disadvantages of the functional design include all of the following except:

• A) employees tend to identify with the organization rather than functional department
• B) employees tend to lose sight of the organization as a whole
• C) coordination of across functional departments can become difficult
• D) focus is on narrow set of tasks

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Definitions:

Zero Economic Profit

Occurs when a firm's total revenues are exactly equal to its total costs, including both explicit and implicit costs, indicating no abnormal profit above the normal rate of return.

Continue to Produce

The decision by a business to maintain production activities, often evaluated in the context of profitability and market demand.

MR = MC

The economic principle where marginal revenue equals marginal cost; it is optimal for firms pursuing profit maximization.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms make normal profits in a competitive market.