Divisions based on geographic area such as city or region are called what?

• A. Geographic divisions
• B. Functional divisions
• C. Product divisions
• D. Market divisions

Answer: (A)

Divisions organized by geographic area are called geographic divisions. This structure groups activities by location—city, region, or territory—so management can tailor decisions to local conditions, such as local laws, market characteristics, or tax rules. It contrasts with functional divisions (organized by the function of the work, like finance or operations), product divisions (organized by product lines), and market divisions (organized by customer or market segment rather than location). For example, a property assessment office might divide its work into geographic regions to handle fieldwork and appeals within each area.