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Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured? -

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Question

Which type of organisational structures is the most suitable for those business enterprises where a large variety of products are manufactured?

Options

  • Functional

  • Divisional

  • Both (1) and (2)

  • None of the above

MCQ

Solution

Divisional

Explanation - 

A corporation dealing in a wide variety of products should have a divisional organisational structure since this system divides personnel into groups depending on products or markets, allowing each division to succeed independently.

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