Which of the following is true about the functional structure?

The correct option is that it provides organization with clear chain of command.

Functional structure of organization distributes departmental work based on specialization and similarities of task. This structure clearly communicates each employees about their task and responsibility. Thus, the authority responsibility relationship and chain of command is also clearly defined.

Other options are incorrect as functional structure provides vertical communication and maintains a direct contact with their department's immediate superiors. Therefore, its aim is to effectively communicate messages without affecting task of other developments.