Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which structure is most suitable when a large variety of products are manufactured?

Options:

Divisional structure

Functional Structure

Any of 1 and 2

None of the above

Correct Answer:

Divisional structure

Explanation:

The correct answer is option 1- divisional structure.

In a divisional structure, the organisation structure comprises of separate business units or divisions. Each unit has a divisional manager responsible for performance and who has authority over the unit.
Divisional structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources. When an organization grows and needs to add more employees, create more departments and introduce new levels of management, it will decide to adopt a divisional structure.