Assertion (A): Functional structure promotes functional specialisation. Reason (R): It groups all activities only according to product lines.

For the following practice assertion–reason questions, choose: (A) Both A and R are true, and R correctly explains A. (B) Both are true, but R does not correctly explain A. (C) A is true, but R is false. (D) A is false, but R is true.

Answer – (C) The assertion is true; product-based grouping describes divisional structure.