Question

Which type of organisational structures is the most suitable when the size of the organisation is large and is producing one line of product?

Options

• Functional

• Divisional

• Both (1) and (2)

• None of these

Answer 1

Functional

Explanation -

When the size of the organisation is enormous, the activities are diverse, and the operations require a high degree of specialisation, a functional structure is the best option.