Question

Which of the following is not a demerit of divisional structure?

• A. Conflict may arise among different divisional heads due to different interests.
• B. All functions related to a particular product are integrated into one department.
• C. Authority provided to the managers to supervise all activities related to a particular division may lead to undesirable consequences.
• D. It is an expensive structure to maintain, since there may be a duplication of activities across products.

Answer 1

The correct option is B

All functions related to a particular product are integrated into one department.

Answer (b) All functions related to a particular product are integrated into one department.

Explanation: The divisional structure is a sort of hierarchical construction that bunches each authoritative capacity into a division. Each division holds all the essential assets and capacities inside it to help a product line or geography (for instance, its own Information Technology department, Finance department, and Marketing department).