Q. Which of the following is not a demerit of divisional structure?
  • (A) It is an expensive structure to maintain, since there may be a duplication of activities across products.
  • (B) All functions related to a particular product are integrated in one department.
  • (C) Conflict may arise among different divisional heads due to different interests.
  • (D) Authority provided to the managers to supervise all activities related to a particular division may lead to undesirable consequences.
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✅ Correct Answer: (B) All functions related to a particular product are integrated in one department.

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