Question : An organisation structure in which various department are created on the basis of products, territory or region is called a _________.
Option 1: Divisional structure
Option 2: Functional structure
Option 3: Matrix structure
Option 4: Staff structure
Correct Answer: Divisional structure
Solution :
When the organisation is large in size and is producing more than one type of product then activities related to one product are grouped under one department is called divisional structure. An organisation structure in which various departments are created on the basis of products, territory or region is called a divisional structure.
Hence, option 1 is the correct answer.