Question

The structure that organizations most commonly adopt to solve the control problems that result from producing many different kinds of products in many different locations for many different types of customers is the divisional structure.
a. True
b. False

Answer 1

Answer:

a. True

Explanation:

There are two commonly used organization structures by firms. The first one is known as the Functional Organization Structure. The other one is known as the Divisionalized Organisation Structure.

Functional Organization Structure - Activities of a similar type within the company are placed under the control of the appropriate department head. Examples of Functions are Production, Marketing and Finance.

Divisionalized Organisation Structure - Organisations are split up into divisions in accordance with products that are made. These divisions are separate Investment and Cost Centers and decision making is decentralized.