A divisional structure groups functions according to the specific demands of products, markets, or customers.

Question

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This is a true statement. In a divisional structure, different divisions or units are created based on products, markets, or customers, and each division operates as a separate entity with its own set of functions, resources, and goals. This allows organizations to better respond to the unique needs and challenges of each division and to achieve greater operational efficiency and effectiveness.

A Divisional Structure Groups Functions According to the Specific Demands