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12th Class Business Studies Organising Question Bank MCQs - Organising

  • question_answer
    A company, which manufactures a popular brand of toys, has been enjoying a good market reputation. It has a functional organisational structure with separate departments for Production, Marketing, Finance, HRD and R&D. Lately to use its brand name and also to cash on to new business opportunities, it is thinking to diversify into the manufacturing of a new range of electronic toys for which a new market is emerging. Which organizational structure is adopted by the company?

    A) Informal structure

    B) Formal structure

    C) Divisional structure

    D) Functional structure

    Correct Answer: D

    Solution :

    The company can continue with the same organisational functional structure as it has added a new product to the existing product line. It is just required to set up another manufacturing unit for electronic toys.


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