Which of the Following Is Considered to Be an Advantage

question 283

Multiple Choice

Which of the following is considered to be an advantage of functional departmentalization?

• A) Employees begin to identify with their department and its goals rather than with the goals of the entire organization.
• B) People in the same department tend to think very differently.
• C) Departments are isolated from one another.
• D) Employee skills can be developed in depth.

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Definitions:

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity by calculating the present value of expected future cash flows using a discount rate.

Cash Payback Period

The duration of time it takes for an investment to generate enough cash flow to recover its initial outlay.

Straight-Line Method

A technique for figuring out an asset's depreciation, apportioning a consistent depreciation value annually throughout the asset's lifespan.

Net Present Value

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.