An advantage of divisional structure is:

The correct answer is Option (1) → Prepares the divisional head for higher positions

• Option (1) Prepares the divisional head for higher positions — Correct. In a divisional structure the organisation is split into divisions by product, each under one divisional head. The divisional head looks after every function of his product. He gains experience in all of them and develops varied skills, which prepares him for higher positions.

• Option (2) Focus on limited range of skills — Incorrect. A narrow focus on one kind of skill belongs to the functional structure, where each head handles only one function. The divisional head needs varied skills.

• Option (3) Economical — Incorrect. The divisional structure is costly. Each division keeps its own set of functions, so facilities and staff are duplicated across divisions.

• Option (4) Ensures different functions get due attention — Incorrect. This is an advantage of the functional structure, where each function has its own department and its own specialist head.