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CBSE Class 12 Business Studies 2015 Delhi set 3

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Question : 2 of 7
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Define 'Formal Organisation'.
Solution:  
A formal organisation structure is a welldefined structure of authority and hierarchy that clearly specifies the boundaries of authority and responsibility in an organisation. The rules and policies to be followed are clearly stated. A formal organisation structure is deliberately created by the managers of an organisation to ensure its smooth and systematic functioning.
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