Describe the Five Common Forms of Departmentalization, or Ways That

question 70

Essay

Describe the five common forms of departmentalization, or ways that an organization can group activities. Give an example of each.

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Definitions:

Own Capital

The personal wealth or assets invested in a business by its owners.

Long-Run

A period of time in which all factors of production and costs are variable, allowing for complete adjustment to change.

Market Entry

The process by which a company or business begins to participate in a new market, facing existing competitors and regulations.

Normal Return

The minimum profit necessary for a company to remain viable in its industry, often considered the opportunity cost of capital.