The factor that distinguishes functional organizational structure from divisional is that:
A) a functional structure is organized around the outputs a firm produces.
B) a functional structure is best suited to deal with environmental change.
C) a functional structure groups diverse functions into separate divisions.
D) a functional structure is organized in terms of main activities performed.

Question

Quizplus · Accepted Answer

A functional structure is organized in terms of main activities performed. A divisional structure, on the other hand, groups diverse functions into separate divisions based on geographic or product/service lines.

The Factor That Distinguishes Functional Organizational Structure from Divisional Is