The correct answer is Option (1) → Divisional Structure
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Divisional Structure → Correct. Consists of separate business units (e.g., based on product, region, or customer). Each division has its own resources and functions like production, marketing, finance, etc.
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Functional Structure → Groups activities by function (e.g., production, marketing, finance), not separate business units.
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Vertical Structure → Refers to hierarchy/chain of command, not independent units.
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Informal Structure → Network of personal/social relations, not a formal business unit arrangement.
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