When and why should I combine functions in a package?

I have asked this question informally of a few people who "should know", but never been given an intelligent answer :-( Nor have I found a significant discussion -
Can anyone provide some insight?
Thanks, George

Good education on Advantages mentioned. Andrew's note on performace is interesting.
Following does not fall under the Advantages, but some thing which I want to bring to expert's notice to see what could be the rationale behind it.
AND You guys must have already noticed this,
It is required by oracle that each proceduce/funtion mentioned in the package SPEC must be defined in the BODY, BUT it is not the case with vice versa. We can define a procedure or funtion in a BODY with out specifying it in the SPEC. However we can not publicly use such procedure or function. We could use it privately with in the procedures of the package, more like private methods of C++ Class. Oracle may be simplifying on specification part of it.
Thx,
SriDHAR

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