Which of the following is NOT one of the six business structure types?

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The designation of a business structure as hierarchical is indeed commonly recognized in organizational theory, typically describing a model in which employees are grouped into a series of levels, indicating levels of authority and responsibility. In contrast, the six business structure types include functional, divisional, matrix, team-based, network, and process structures, each representing distinct approaches to organizing a business.

When examining the options provided, functional structures focus on departmentalization based on specific functions or roles, while divisional structures group employees based on products, services, or geographic locations. Horizontal structures emphasize flatter management and decentralized decision-making, fostering cross-functional collaboration. Since hierarchical is not categorized among the six recognized business structures, it stands out as an incorrect identification within the context of this question.

Understanding these structures is crucial for business leaders as they determine how an organization operates, communicates, and ultimately achieves its objectives.

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