Question

Procter & Gamble is a consumer products company. It launches many new products every year. The team for each new product must understand consumer tastes, distribution, manufacturing, marketing, accounting, and legal issues. P&G creates teams from each of these functional areas for each project. This is called a
a, specialist organization
b, functional organization
c, matrix organization

Answer 1

Creating a team from each of the functional areas for each project is called a functional organization

Explanation:

Functional organization is a structure, where the organization is divided into many smaller groups, according to the functions performed like manufacturing, marketing,  distribution, accounting e t c.

The advantage of such a structure is, the company can utilise the expertise of people from each of these departments or functional areas, to help the organization to run smoothly.

By having such a structure , mistakes can be avoided and the company can function in an organized manner.