What potential issue arises from a Flat Structure?

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Prepare for the T-Level Finance 1.2 Test. Utilize flashcards and multiple-choice questions, each with hints and explanations to aid your understanding. Ensure you're ready for success!

A flat structure in an organization typically eliminates multiple layers of management, leading to a potentially complex scenario where employees may take on multiple roles. This can lead to confusion regarding responsibilities and accountabilities. When individuals are assigned various roles without clear delineation, it can create ambiguity in job functions, overlapping duties, and difficulties in performance evaluation. Employees may find it challenging to know whom to report to or what their specific responsibilities are, as they could be pulled in different directions by different roles they are performing.

While the other options highlight aspects that may seem beneficial or neutral, such as enhanced skill specialization or simple reporting lines, they do not address the inherent challenges of role confusion that can arise in a flat organizational structure. Thus, the issue of confusion due to multiple roles is a significant concern in such environments, impacting overall efficiency and clarity within the organization.

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