Adam Smith's pin factory and Henry Ford's automobile assembly line are examples of
A)Product lines
B)Functionally organized firms
C)Inefficient processes
D)In-line production

Question

​Adam Smith's pin factory and Henry Ford's automobile assembly line are examples of
A)​Product lines
B)Functionally organized firms
C)Inefficient processes
D)​In-line production

Quizplus · Accepted Answer

Both Adam Smith's pin factory and Henry Ford's automobile assembly line represent a functional organization of the production process. In a functional organization, tasks are grouped by their specific function (such as production, marketing, or administration) and employees specialize in one particular task to achieve greater efficiency and expertise. Both examples illustrate how the division of labor and specialization create greater efficiency and productivity.

​Adam Smith's Pin Factory and Henry Ford's Automobile Assembly Line

Adam Smith's Pin Factory and Henry Ford's Automobile Assembly Line