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Which of the following are true of the functional structure?
A. It leads to occupational organisations
B. It leads to minimal duplication of efforts which results in economies of scale
C. Product specialisation helps in development of varied skills in divisional head
D. Easy training of employees as focus is on limited range of skills.
E. New divisions can be added without interrupting the existing operations
Choose the correct answer from the options given below:
  • a)
    A, B, D Only
  • b)
    A, B, D and E Only
  • c)
    B, C, D Only
  • d)
    C, D, E Only
Correct answer is option 'A'. Can you explain this answer?
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Which of the following are true of the functional structure?A. It lead...
Occupational Organisations
- The functional structure leads to occupational organisations by grouping employees based on their expertise or skills.
- This allows for specialization and efficiency in performing tasks within the organization.

Economies of Scale
- The functional structure minimizes duplication of efforts by grouping similar activities together under one department.
- This leads to economies of scale as resources are utilized more efficiently and effectively.

Easy Training of Employees
- Training employees is simplified in a functional structure as the focus is on a limited range of skills within each department.
- This allows for specialized training programs tailored to the specific functions of each department.
Therefore, the correct answer is option 'A' as these points highlight the key characteristics and advantages of the functional structure.
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Which of the following are true of the functional structure?A. It lead...
The correct answer is A
Functional Structure: refers to an organizational design where employees are grouped based on their area of expertise or function, such as marketing, finance, or human resources. The functional structure offers several advantages, including:
A. It leads to occupational organizations
  • When employees are grouped based on their area of expertise, it promotes the development of occupational organizations. This means that employees become experts in their respective fields, leading to increased efficiency and effectiveness in their work.
B. It leads to minimal duplication of efforts which results in economies of scale
  • In a functional structure, each department focuses on its specific tasks and responsibilities, which helps to minimize the duplication of efforts. This, in turn, leads to economies of scale, as companies can leverage their specialized resources more effectively.
D. Easy training of employees as focus is on limited range of skills
  • In a functional structure, employees are trained in a limited range of skills specific to their department or area of expertise. This makes it easier for the organization to train new employees and develop their skills, as the focus is on a specific set of tasks and responsibilities.
However, the following options are not necessarily true of the functional structure:
C. Product specialization helps in the development of varied skills in divisional head
  • This statement is more applicable to a divisional or product-based organizational structure, where each division focuses on a specific product or service. In a functional structure, the focus is on the area of expertise or function, rather than product specialization.
E. New divisions can be added without interrupting the existing operations
  • While it may be possible to add new divisions without interrupting existing operations in some cases, this statement is not universally true for functional structures. The ease of adding new divisions depends on the specific organization and its existing structure, as well as the nature of the new division being added.
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Direction: Read the case study given below and answer the questions that follow:International trade is the result of specialisation in production. It benefits the world economy if different countries practise specialisation and division of labour in the production of commodities or provision of services. Each kind of specialisation can give rise to trade. Thus, international trade is based on the principle of comparative advantage, complementarity and transferability of goods and services and in principle, should be mutually beneficial to the trading partners. In modern times, trade is the basis of the world’s economic organisation and is related to the foreign policy of nations. With well-developed transportation and communication systems, no country is willing to forego the benefits derived from participation in international trade.How does specialisation increase trade?

Direction: Read the case study given below and answer the questions that follow:International trade is the result of specialisation in production. It benefits the world economy if different countries practise specialisation and division of labour in the production of commodities or provision of services. Each kind of specialisation can give rise to trade. Thus, international trade is based on the principle of comparative advantage, complementarity and transferability of goods and services and in principle, should be mutually beneficial to the trading partners. In modern times, trade is the basis of the world’s economic organisation and is related to the foreign policy of nations. With well-developed transportation and communication systems, no country is willing to forego the benefits derived from participation in international trade.How does international trade benefit the world economy?

Direction: Read the case study given below and answer the questions that follow:International trade is the result of specialisation in production. It benefits the world economy if different countries practise specialisation and division of labour in the production of commodities or provision of services. Each kind of specialisation can give rise to trade. Thus, international trade is based on the principle of comparative advantage, complementarity and transferability of goods and services and in principle, should be mutually beneficial to the trading partners. In modern times, trade is the basis of the world’s economic organisation and is related to the foreign policy of nations. With well-developed transportation and communication systems, no country is willing to forego the benefits derived from participation in international trade.What would happen if there was no international trade?

Direction: Read the case study given below and answer the questions that follow:International trade is the result of specialisation in production. It benefits the world economy if different countries practise specialisation and division of labour in the production of commodities or provision of services. Each kind of specialisation can give rise to trade. Thus, international trade is based on the principle of comparative advantage, complementarity and transferability of goods and services and in principle, should be mutually beneficial to the trading partners. In modern times, trade is the basis of the world’s economic organisation and is related to the foreign policy of nations. With well-developed transportation and communication systems, no country is willing to forego the benefits derived from participation in international trade.On what principles is international trade based?

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Which of the following are true of the functional structure?A. It leads to occupational organisationsB. It leads to minimal duplication of efforts which results in economies of scaleC. Product specialisation helps in development of varied skills in divisional headD. Easy training of employees as focus is on limited range of skills.E. New divisions can be added without interrupting the existing operationsChoose the correct answer from the options given below:a)A, B, D Onlyb)A, B, D and E Onlyc)B, C, D Onlyd)C, D, E OnlyCorrect answer is option 'A'. Can you explain this answer?
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