Question

______ ensures that the heads of separate business units in the organisation are responsible for profit or loss of their unit and have authority over it. 

Options

• Span of management

• Divisional structure

• Functional structure

• Hierarchy of authority

Answer 1

Divisional structure

Explanation - 

In a divisional structure, separate 'business units or divisions make up the organisation. Each unit has a divisional "manager" who is "responsible for" the unit's success and has authority over it.