What ensures that the heads of separate business units in the organisation are responsible for profit and loss of their unit and have authority over it?
Answer & explanation
Correct answer: option 2
The correct answer is option 2-Divisional Structure.
Divisional organisation structure in which various departments are created on the basis of products, territory or region, is called a divisional structure. Each unit has a divisional manager, who is responsible for performance and has authority over their division.