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In a divisional structure, each division works as what kind of centre?
AProfit centre
BService centre
CCost centre
DWelfare centre
Answer & Solution
Correct answer: A. Profit centre
The divisional head is responsible for the profit or loss of the division, so it acts as a profit centre.
Related questions
Organising is described as a means of translating what into action?Where do decisions travel faster because approval from many levels is not needed?Which benefit of decentralisation promotes self-reliance among subordinates?Can any organisation be completely centralised or completely decentralised?What would complete centralisation of all decisions at the apex make unnecessary?Under decentralisation, where is decision making authority placed?In which type of organisation does decision making authority lie with top management?Delegation of authority establishes which relationships in the hierarchy?