One-year-old alex uses the word "hat" to refer only to his favorite blue baseball cap. alex is demonstrating an error.

The correct answer is underextension error.
This means that the child is exhibiting more limited understanding of a certain word than an adult person would have. So, Alex wanted to refer to his baseball cap, but he used the word 'hat,' because that is the term to include all types of hats, where you can find a cap, a beanie, etc.

Allows functional managers to specialize in one product area, division managers become experts in their area, removes need for direct supervision of division by corporate managers, also divisional management improves the use of resources