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Which of the following are the advantages of group activities in accordance with the functions of an…

In Harold Koontz and Heinz Weihrich's analysis of Functional Departmentation (grouping activities in accordance with the functions of an enterprise), the key advantages are:…

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Which of the following are the advantages of group activities in accordance with the functions of an enterprise?

(1) Logical reflection of functions

(2) Maintain power and prestige of major functions

(3) Follows principle of occupational specialisation

(4) Responsibility for profit is at the top only

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Answer and explanation

Correct answer C

In Harold Koontz and Heinz Weihrich's analysis of Functional Departmentation (grouping activities in accordance with the functions of an enterprise), the key advantages are: (1) it is a logical reflection of functions, (2) it maintains the power and prestige of major functions, and (3) it follows the principle of occupational specialisation. 'Responsibility for profit is at the top only' (4) is a disadvantage, not an advantage, of functional departmentation.

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