In a functional structure, activities are grouped according to their similar or related skills, expertise and use of the same resources. It is often used by SMEs (small and medium-sized enterprises) around basic business functions such as production, marketing and sales, and finance and accounting. We can readily see the benefits of grouping by specialization: it encourages in-depth skills development and core competence, high standards and efficient use of resources. Centralized operations within each function enhance the coordination of work activities. Correct answer is B.