CAPM (Certified Associate in Project Management) Practice Exam

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What are the cons of a functional organization?

High overhead costs and inefficient resource utilization
Lack of innovation and resistance to change
Client not the focus of activity, slow response to clients, and a fragmented approach to projects
Too much focus on team collaboration and insufficient competitive drive

The correct answer is: Client not the focus of activity, slow response to clients, and a fragmented approach to projects

In a functional organization, the client may not be the central focus of activity, resulting in slow responses to clients and a fragmented approach to projects. This can lead to delays in decision-making and project execution, ultimately affecting client satisfaction and project success. Therefore, option C is correct. Options A, B, and D touch on some disadvantages of functional organizations but do not directly address the issue of the client not being the main focus of activity, slow response to clients, and a fragmented approach to projects, which are key cons of a functional organization.