Answer to Question 1
True
Answer to Question 2
A divisional structure groups functions according to the specific demands of products, markets, or customers. The different types of divisional structures are:
1. Product structure: If an organization is facing a control problem due to the number and complexity of products, the organization divides its activities by product and uses a product structure.
2. Geographic structure: If the control problem is due to the number of locations in which the organization produces and sells its products, the organization divides its activities by region and uses a geographic structure.
3. Market structure: If the control problem is due to the need to service a large number of different customer groups, the organization divides its activities by customer group and uses a market structure.
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