Divisional structure is suitable for which of the following business enterprises?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Organization producing a large variety of products using different productive resources.
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Divisional structure groups activities on the basis of products, services, or geographical areas.
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It is most suitable for large organizations with diversified activities where each division works as a self-contained unit, focusing on a particular product line or market.
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For example, a company producing soaps, textiles, and cement may have separate divisions for each.
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The other options describe situations better suited for a functional structure (where emphasis is on specialization in marketing, production, finance, etc.).