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Question

Departments are established on the basis of ________ in functional organisation.


A

Products

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B

Demand

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C

Market

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D

Activities

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Solution

The correct option is D

Activities


Explanation: Functional organisations have been divided to place the experts in the top position all through the organisation. This is an association wherein we can characterise it as a framework where functional departments are made to manage the issues of business at different levels. Authority in these departments stays inbound to a useful direction to various divisions. This aids in keeping up with the quality and consistency of execution of various capacities all through the organisation.

Hence, option (d) is correct.


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