Functional structures are an effective way to organize when:
A) The company begins reporting its financial results publicly
B) A company has completed the process of downscoping
C) Business activity or volume has outgrown a simple structure
D) There is a need to train employees for general management positions

Question

Quizplus · Accepted Answer

Functional structures are typically used when a company's business activity or volume has grown to the point where a simple structure is no longer sufficient. In a functional structure, employees are grouped according to the function they perform, such as marketing or operations. This allows for greater specialization and efficiency as the company grows. The other options may not directly relate to the need for a functional structure.

Functional Structures Are an Effective Way to Organize When