Answer to Question 1
A matrix organization uses a decentralized structure that assigns employees to multifunctional teams as well as to functional elements. The advantages of the structure are: makes specialized knowledge available to all projects, uses resources flexibly to meet project requirements, forces communication among managers, and can be adapted by shifting emphasis between functional and project orientation. Disadvantages include: increased stress on employees because of dual reporting relationships and possible power struggle between functional and project managers.
Answer to Question 2
Commercial general liability insurance provides protection against financial loss that may result from injuries or property loss sustained by third parties as a consequence of a construction firm's activities.
Answer to Question 3
Automobile insurance policies typically only provide coverage for vehicles driven on a highway, but not mobile equipment used on construction sites. To provide coverage for mobile equipment, construction companies need to purchase equipment floater insurance.
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