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In a manufacturing concern, division of work into key functions will include production, purchase, marketing accounts and personnel. These departments may be further divided into sections. Which type of structure is highlighted here?

Solution

Correct Option: 2

When an organisation groups activities based on functions like production, purchase, marketing, finance, and personnel, it is a Functional structure. A Divisional structure groups activities around products or regions, not functions. Hence functional structure is the correct answer.

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