Question : A corporation with a Rs.20,000 crore authorised share capital has been registered under the Companies Act. Its manufacturing facility is located in a less developed Bihar area, although its registered office is in Delhi. The company's marketing division is located in Bhopal. The business produces fast-moving consumer goods (FMCG). Which organisational structure would best meet the needs of the business?
Option 1: Functional structure
Option 2: Divisional structure
Option 3: Formal organisational structure
Option 4: Informal organisational structure
Correct Answer: Divisional structure
Solution : Divisional structure has the following benefits: 1. Product specialisation fosters the growth of a variety of abilities. 2. It aids in the fixing of accountability as divisional leaders are responsible for the profits, revenues, and expenses associated with their departments. 3. It encourages flexibility, innovation, and quicker decision-making because each section operates independently. 4. As additional divisions can be introduced without disrupting current operations, it supports expansion and growth. 5. Due to the integration of all activities pertaining to a specific product line, the issue of departmental coordination is lessened. Hence, the correct option is 2.
Question : A business that produces a well-known toy brand has a solid market reputation. Production, Marketing, Finance, Human Resources, and Research and Development are all handled by various divisions. Recently, it has considered expanding into the production of a new line of electronic toys for which a new market is growing in order to capitalise on new commercial opportunities while also utilising its brand name. The organisational structure that the business should use is:
Option 2: Formal Organisation Structure
Option 3: Divisional structure
Option 4: Informal Organisation Structure
Question : A business that produces a well-known toy brand has a solid market reputation. Production, Marketing, Finance, Human Resources, and Research and Development are all handled by various divisions. Recently, it has considered expanding into the production of a new line of electronic toys for which a new market is growing in order to capitalise on new commercial opportunities while also utilising its brand name. The organisational structure that the business should use.
Option 3: Formal Organisation Structure
Question : Case Study: ABC Corporation - Financing Growth Strategies
ABC Corporation, a leading manufacturing company, is looking to finance its growth strategies. The company is exploring various sources of business finance to achieve its expansion goals.
Questions : Business Finance and Expansion
Which financial decision involves choosing the appropriate sources of funds for business activities?
Option 1: Marketing strategy
Option 2: Inventory management
Option 3: Financial planning
Option 4: Human resource allocation
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