Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which of the following case is suitable to divisional structure?

Options:

In case of large organizations

In case of plan to add more products

In case of diversified activities

In case a task requires high degree of specialization

Correct Answer:

In case of plan to add more products

Explanation:

The correct answer is option 2- In case of plan to add more products.

Divisional structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources. When an organisation grows and needs to add more employees, create more departments and introduce new levels of management, it will decide to adopt a divisional structure.