Asked by Alyssa Montoya on Sep 24, 2024

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​Which of the following is TRUE about firms organized along functional lines?

A) ​Workers find it difficult to develop functional expertise
B) Workers find it difficult to share information within their division
C) They foster the exploitation of economies of scale
D) ​All of the above

Functional Lines

The division of a business into departments or teams based on functions such as marketing, finance, or operations.

Functional Expertise

Specialized knowledge and skills in a particular area or department within an organization that contribute to its efficiency and success.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically resulting from factors like mass production and bulk purchasing.

  • Apprehend the nuances and advantages of functional organization in business organizations.
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Verified Answer

RM
Ramona Mcglone5 days ago
Final Answer :
C
Explanation :
Firms organized along functional lines are structured around specialized areas, such as marketing, operations, and finance. This allows them to exploit economies of scale by consolidating resources and expertise in each area, resulting in cost savings and efficiency. While there may be some challenges with information sharing and developing expertise, these are not generally considered significant drawbacks of the functional structure. Therefore, the correct answer is C.