Organising · Class 12 · CBSE · Commerce Business Studies

ABC Ltd. has grown significantly and decided to divide its major activities into Production, Purchase, Marketing, Sales, and Human Resources. Which t…

Practice question from Organising (Class 12 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.

medium · MCQ · Q-E9AF34

ABC Ltd. has grown significantly and decided to divide its major activities into Production, Purchase, Marketing, Sales, and Human Resources. Which type of organisational structure is the company adopting?

  1. A.Divisional structure
  2. B.Functional structureCorrect answer
  3. C.Informal structure
  4. D.Network structure

Solution

Grouping jobs of similar nature according to functions (such as production, marketing, finance, etc.) creates a functional structure, which promotes occupational specialization and economies of scale.

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