Which of the following is a disadvantage of a divisional structure?
A) It is not suited to competitive situations where coordinated action is needed for innovation.
B) This structure does not allow for much accountability.
C) It is not suited to business environments marked by high degrees of uncertainty.
D) Core functions are duplicated,preventing the development of economies of scale.

Question

Quizplus · Accepted Answer

A divisional structure can lead to duplication of core functions, which can prevent the development of economies of scale. This can be a significant disadvantage for the organization, especially when it is trying to maintain a competitive edge in the market.

Which of the Following Is a Disadvantage of a Divisional