What statement in not false in respect of Divisional structure ?

It is most suitable for product specialisation

The correct answer is option (3) : It is most suitable for product specialisation

Functional Structure

Suitability: It is most suitable when the size of the organisation is large, has a diversified activities and operations require a high degree of specialisation.

Divisional Structure

Suitability: Divisional structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources.