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 -

A divisional structure is a method in which a firm divides its personnel into groups based on goods or markets, resulting in job specialisation and accountability for the profit or loss of their unit.