Hi Pratik,
for your further question, here is a scenario.I am sure you do assignments during your trial implementation. I am pretty sure you would have come across an error which can be resolved using the Tcodes VOR1, 2 & 3. likewise you would have had to maintain condition master at OVKK against respective sales area and pricing procedure. Now imagine, you face an error while processing a sales order such as the material cannot be processed for this sales area; it can be resolved by using cross division however the end users might not always remember to do that especially when there are too many divisions or even worse custom divisions come into the picture (like in real time scenarios) now as a consultant tracking them and maintaining/changing the entries can be frustrating. I hope you understand what I am talking about, we have a huge set of factorial like combinations we need to maintain and track. So in order simplify things (consultant's job) we restrict the number of divisions to a minimum as possible.
But in reality it does not matter that much cuz then again in the automobile company I work for we have only one division for each region yet we have consolidated ALL the products under the same division relevant to the region, we proposed it and they accepted it since anyway their main objective was that the inter customer placed orders and received material for the same which naturally does not require product specific reports too often. So as far as SAP is concerned it does not matter that much as long as things are easy to track.
I hope i am on track.
Regards
Vijay