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The pros of vertical functional are Economies of scale, co-location of skills, centralized decision making?

a) True

b) False

1 Answer

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Final answer:

Economies of scale, the co-location of skills, and centralized decision-making are true pros of vertical functional organizations because they enable cost advantages, enhanced collaboration, and consistent strategic decisions.

Step-by-step explanation:

The statement that economies of scale, co-location of skills, and centralized decision-making are pros of vertical functional organization is True. These aspects are indeed considered advantages in this context. Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale. Co-location of skills signifies that having all specialists in a field work together in the same location can enhance collaboration and efficiency. Centralized decision-making ensures that decisions are consistent and align with the organization's overall strategy, although it may reduce flexibility and responsiveness.

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