Asked by Shubham Gandhi 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 can easily share information within their division
C) They inhibit the exploitation of economies of scale
D) ​All of the above

Functional Lines

The divisions within an organization based on functions or roles, such as marketing, finance, and human resources.

Functional Expertise

Specialized knowledge or proficiency in a particular area or department of a business, contributing to its success and efficiency.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a lower cost per unit as output increases.

  • Understand the characteristics and advantages of functional organization in firms.
  • Analyze the impact of organizational structure on information sharing, economies of scale, and expertise development.
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Aurora Sanchez2 days ago
Final Answer :
B
Explanation :
Firms organized along functional lines have workers grouped by their area of expertise, which allows for easy sharing of information within the division. Workers can develop functional expertise as they are specialized in their field. However, it may inhibit the exploitation of economies of scale, as departments may focus more on their own functions rather than the overall goal of the organization. Therefore, options A and C are incorrect.