Divisional structure is suitable for which of the following business enterprises?

1. A large-sized organization requiring functional specialization.
2. Organisation has diversified activities where emphasis is placed on specific functions.
3. An organization where operations require a high degree of specialization
4. Organization producing a large variety of products using different productive resources

Option 1 -> This describes a functional structure where departments are organized by specialized functions (marketing, finance, HR, etc.), not a divisional structure.

Option 2 -> When emphasis is placed on specific functions rather than products or markets, a functional structure is more appropriate than a divisional structure.

Option 3 -> High degree of operational specialization suggests a functional structure where experts are grouped by specialty, not a divisional structure.

Option 4 -> Divisional structure is ideal when an organization has diverse product lines requiring different resources, as each division can operate semi-autonomously with dedicated resources for its specific products.

Hence, Option 4: Organization producing a large variety of products using different productive resources -> Divisional structure works best for organizations with diversified product portfolios because each division can be organized around specific product lines, with its own dedicated resources, functional departments, and decision-making authority. This allows better focus on each product category's unique requirements and markets. -> correct