What are the advantages and disadvantages of using a functional structure to manage a project?

What will be an ideal response?

A functional structure groups people and departments performing similar activities into units. Division of labor in the functional structure is not based on the type of product or project supported, but rather according to the type of work performed. In an organization having a functional structure, members routinely work on multiple projects or support multiple product lines simultaneously. The most common weakness in a functional structure is the tendency for employees organized this way to become fixated on their concerns and work assignments to the exclusion of the needs of other departments (called functional siloing). An additional weakness of the functional structure is it provides no logical location for a central project management function and that projects operating in this environment must be layered on top of the duties of functional groups. Finally, there is a tendency to sub-optimize efforts on a project that is not tightly bound to a group. A department that is not directly affected by a project may put forth only the minimum effort.

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Which of the following statements accurately describes value-added selling?

A) Value-added selling has emerged as a response to the product strategy. B) Value-added selling has emerged as a response to the customer economy. C) Value-added selling surfaced during the era of transactional selling. D) Value-added selling would not be an appropriate strategy in international markets. E) Value-added selling is only appropriate for services, not products.

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PBJ Corporation issued bonds on January 1, 2006. The bonds had a coupon rate of 5.5%, with

interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2021. What is the yield to maturity for a PBJ Corporation bond on January 1, 2012 if the market price of the bond on that date is $950? A) 6.23% B) 5.50% C) 8.43% D) 10.50%

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