Q3. (a) The following information is available in respect of the year ended 31 December 2019 and 2020:

Bersatu Bhd Statement of Profit and Loss for the year ended December 31, 2019 and 2020
Year	2020	2019
	RM	RM
Sales revenue	858,000	803,000
Less: Cost of goods sold	513,000	509,000
Gross profit	345,000	294,000
Less: Operating expenses	244,000	237,000
Operating income	101,000	57,000
Less: Interest expenses	20,000	14,000
Income before income taxes	81,000	43,000
Less: Income taxes	33,000	17,000
Net Income	48,000	26,000

.Bersatu Bhd Statement of Financial Position for the year ended December 31, 2019 and 2020
Year	2020	2019
Assets	RM	RM
Current Assets:
Cash	29,000	32,000
Account Receivable	114,000	85,000

Inventory	113,000	111,000
Other current assets	6,000	8,000
Total current assets	262,000	236,000
Property, plant and equipment	507,000	399,000
Other non-current assets	18,000	9,000
Total assets	787,000	644,000
Liabilities
Current liabilities:
Accounts payable	73,000	68,000
Notes payable	42,000	27,000
Accrued Liabilities	27,000	31,000
Total current liabilities	142,000	126,000
Long term liabilities	289,000	198,000
Total liabilities	431,000	324,000
Stockholders Equity
Common stock	186,000	186,000
Retained earnings	170,000	134,000
Total stockholders equity	356,000	320,000
Total liabilities and equity	787,000	644,000

Required:

(b) Divisionalised structures are normal in large firms, and occur even when centralised structures would be feasible.

(i) Explain and discuss the arguments for divisionalised structures in large firms. (5 marks)

(ii) Discuss the costs and potential inefficiencies of a divisionalised structure. (5 marks)

(iii) Evaluate how adoption of a divisionalised structure changes the role of top management and their control of subordinates. (6 marks)