| Assertion [A] The sales department is insisting on a customer friendly design may cause difficulties in production. |
| Reason [R] In divisional structure, conflicts may arise among different divisions with reference to allocation of funds. |
A) Both Assertion [A] and Reason [R] are true and Reason [R] is the correct explanation of Assertion [A]
B) Both Assertion [A]and Reason[R] are true but Reason [R] is not the correct explanation of Assertion [A]
C) Assertion [A] is true but Reason [R] is false
D) Assertion [A] is false but Reason [R] is true
Correct Answer: B
Solution :
The explanation to A is inter-departmental conflict which is a disadvantage of functional structure.
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