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Which organizational structure consists of separate business units?

Solution

✅ Correct Option: 1

Option 1 -> Organizes company into semi-autonomous divisions, each operating as separate business units with own resources and functions.

Option 2 -> Groups employees by specialized functions (marketing, finance, HR, etc.) rather than separate business units.

Option 3 -> Emphasizes hierarchical chain of command and levels of authority, not separate business units.

Option 4 -> Refers to unofficial relationships and communication networks, not a formal structure with business units.


Hence, Option 1: Divisional Structure -> This structure divides the organization into separate, self-contained business units or divisions based on products, services, geographic regions, or customer segments. Each division operates semi-independently with its own functional departments and resources, making it the structure that specifically consists of separate business units -> correct

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