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Question
Which of the following is a disadvantage of divisional structure?
Options
Conflict may arise among different divisions with reference to allocation of funds.
More emphasis on departmental objectives.
Leads to inter-departmental conflict.
Leads to inflexibility.
MCQ
Solution
Conflict may arise among different divisions with reference to allocation of funds.
Explanation -
Different divisions may have disagreements on budget allocations, and a specific division may strive to maximise its profit at the expense of other divisions.
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