Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Earlier, Toys limited was dealing in different types of toys. Due to tough competition, it now plans to deal in children garments too in addition to toys.

Identify the present structure of organisation of Toys Limited.

Options:

Formal

Informal

Functional

Divisional

Correct Answer:

Functional

Explanation:

The correct answer is option (3) : Functional

Formal Structure (1): A formal structure is characterized by a clear, hierarchical organization with defined roles, responsibilities, and reporting relationships. It's typically based on written rules and procedures.

Informal Structure (2): An informal structure is less rigid and often characterized by fluid communication and flexible roles. It relies on social networks and relationships to get work done.

Functional Structure (3): A functional structure organizes an organization by specialized functions or departments, such as marketing, production, and sales. Each department is responsible for a specific aspect of the business.

Divisional Structure (4) : A divisional structure divides the organization into separate divisions, each responsible for a specific product line, geographic region, or customer  group.