Which of the following is a type of divisional structure in business organizations?

• A. Product-based divisional structure
• B. Network structure
• C. Matrix structure
• D. Functional structure

Answer: (A)

Verified step by step guidance

1. Understand the concept of divisional structure: A divisional structure is a type of organizational structure where the company is divided into semi-autonomous units or divisions, each responsible for its own operations and performance.
2. Identify the types of divisional structures: The most common type is the product-based divisional structure, where divisions are organized based on the products or services offered by the company.
3. Differentiate divisional structures from other organizational structures: For example, a functional structure organizes employees based on their specific functions (e.g., marketing, finance), while a matrix structure combines functional and project-based structures, and a network structure focuses on external partnerships and collaborations.
4. Recognize that the product-based divisional structure is a type of divisional structure: This structure allows each division to focus on a specific product line, making it easier to manage and adapt to market changes.
5. Conclude that the correct answer is 'Product-based divisional structure,' as it is the only option listed that represents a type of divisional structure in business organizations.