Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Read the following passage and answer the following questions.

Nimu Ltd. manufactures toys for children below 12 years. The company implements the plan by clarifying jobs and working relationships for achieving the goal of production of 1000000 toys per month. To achieve this goal, the company divided its activities into purchase, marketing, and finance. Under the marketing department, sales and advertisement activities are grouped. The company makes a framework within which managerial and operating tasks are performed. The manager of the company extends his area of operations as without it, his activities would be restricted to only what he can do.

'The company makes a framework within which managerial and operating tasks are performed.'

Which of the following concept is followed in the above statement?

Options:

Organising

Organisation structure

Formal organisation

Divisional structure

Correct Answer:

Organisation structure

Explanation:

The correct answer is option 2- Organisation structure.

The organization structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources. It allows correlation and coordination among human, physical and financial resources and this enables a business enterprise to accomplish desired goals.