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Question : If a firm wants to diversify its business into different products and expand to different territories, which organisation structure would be suited for this form?

Option 1: Divisional structure 

Option 2: Functional structure 

Option 3: Informal structure 

Option 4: Network structure


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

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. In divisional structure new department can be added without disturbing existing departments.
Hence, option 1 is the correct answer.

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