While growth through expansion of same line of business forces a small organization

While growth through expansion of same line of business forces a small organization

While growth through expansion of same line of business forces a small organization to organize on a functional basis, growth through geographic and product diversification necessitates the adoption of divisional structure. Divisional organization structure takes three forms: product division, geographic division and customer division. Which of the following is an advantage of a product divisional structure?

[A] It addresses the special and widely varied needs of customers for clearly defined services

[B] It encourages the development of expertise in functional areas

[C] It facilitates comparison of the performance of various product lines

[D] It brings about order and clarity to the activities of the organization