Divisional structure is suitable for whi

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Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Divisional structure is suitable for which of the following business enterprises?

Options:

A large-sized organization requiring functional specialization.

Organisation has diversified activities where emphasis is placed on specific functions.

An organization where operations require a high degree of specialization.

Organization producing a large variety of products using different productive resources.

Correct Answer:

Organization producing a large variety of products using different productive resources.

Explanation:

The correct answer is Option (4) → Organization producing a large variety of products using different productive resources.

Divisional structure groups activities on the basis of products, services, or geographical areas.
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.
For example, a company producing soaps, textiles, and cement may have separate divisions for each.
The other options describe situations better suited for a functional structure (where emphasis is on specialization in marketing, production, finance, etc.).