Final answer:
When a company has a diverse product line, divisional structures are more useful.
Step-by-step explanation:
When a company has a diverse product line, each product will have unique demands, leading to the need for divisional structures. Therefore, the statement is true.
In businesses, a diverse product line means that the company offers a wide range of products and services. Each product within this diverse product line may have distinct customer needs, marketing strategies, and distribution channels.
For example, a company that manufactures both clothing and electronics will have different divisional structures to manage these product lines effectively. Each division would be responsible for its own operations, resources, and target market.