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________ structure is suitable for those business enterprises where a large variety of products are manufactured using different productive resources and when an organization grows and needs to add more employees, create more departments and introduce new levels of management.

Solution

✅ Correct Option: 1

The divisional structure suits enterprises where a large variety of products are manufactured using different productive resources, since each product line gets its own division. It also supports growth, as new divisions, departments, employees and levels of management can be added easily. A functional structure suits a single line of products, so divisional is correct.

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