The territorial principle organizes administration based on geographical areas. Each unit handles governmental functions within its specific territory.

Disadvantages of Territorial Organization

Common disadvantages associated with the territorial principle include:

• Uniformity Difficulty: Maintaining consistent administrative practices and service standards across different regions is challenging. (Option 2)
• Encourages Localism: A strong focus on specific territories can lead administrators to prioritize local issues over national interests. (Option 3)
• Dominated by Regional Interests: Territorial divisions may empower regional groups, potentially skewing decisions towards specific regional benefits. (Option 4)

Identifying the Wrong Statement

The question asks to identify the statement that is wrong regarding the disadvantages of the territorial principle. Options 2, 3, and 4 are widely recognized disadvantages.

Option 1, "Not suitable for large areas", is presented as the incorrect statement. While applying the territorial principle in large areas presents significant coordination and communication challenges, the principle itself is the standard method for managing vast geographical expanses (e.g., states, provinces). The core issue isn't fundamental unsuitability, but the complexities and potential inefficiencies encountered. Therefore, the statement that it is outright "not suitable" is inaccurate in this context.

The statement identified as wrong regarding the disadvantages is: Not suitable for large areas.