The CA Hub

PRC-3 · Chapter 3 · Question 21 of 70

What is a potential disadvantage of using a rigid functional organizational structure?

Test yourself: pick an answer

Reveal answer & explanation

Correct answer: B) It can create 'silos' leading to poor communication and conflict between departments

Explanation

A drawback of functional structures is that departments may focus too heavily on their own goals (silos), leading to interdepartmental conflict and poor cross-communication.

All 70 questions in Chapter 3Organization of Business MCQs with answers

More Organization of Business MCQs

Sponsored slot availableRun a CA academy or hiring firm? Put your name in front of students preparing for this exam.Advertise →