Potential Disadvantages of Functional Structures Include All of the Following

question 76

Multiple Choice

Potential disadvantages of functional structures include all of the following EXCEPT:

• A)Difficulties in pinpointing responsibilities for cost containment,product or service quality,timeliness,and innovation.
• B)Provides for clear career paths.
• C)Sense of cooperation and common purpose tends to break down.
• D)Narrow view of performance objectives.
• E)Too many decisions referred upward in the organizational hierarchy.

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Definitions:

Economic Profit

The profit a company makes after subtracting both its explicit and implicit costs.

Monopolistically Competitive Industry

An industry characterized by many firms, differentiated products, and free entry and exit.

Market Share

The fraction of the total industry output accounted for by a given producer’s output.

Economic Profits

Profit that exceeds both the total explicit and implicit costs, often signaling above-normal returns in competitive markets.