Functional structure suits organizations that are large, have diversified activities, and operate a single product line, because grouping is done by function (production, marketing, finance) to gain specialization. Divisional structure is suited for multi-product companies. Since the firm here manufactures only one product, functional structure is most appropriate.
Which type of organizational structure is the most suitable for an organization which is large, has diversified activities and manufacturing one…
CUET UG 2022 — Business Studies Business Studies
2022mcqmedium
Which type of organizational structure is the most suitable for an organization which is large, has diversified activities and manufacturing one product?
Official previous-year question
Held on 16 Jul 2022 · Verified 13 Jul 2026.
Options
- A
Functional
- B
Divisional
- C
Functional and Divisional
- D
Formal
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