Explanation:

- Statement 1: Bureaucratic structures are indeed hierarchical, with clear lines of authority.

- Statement 2: They are often used in large organizations that need specialized roles and clear procedures.

- Statement 3: However, individual accountability is not necessarily lost; in fact, bureaucracies usually have well-defined roles and responsibilities, which can enhance individual accountability, not diminish it.

- Option 1: 1, 2 and 3 – Includes the incorrect statement 3.

- Option 2: 1 and 3 – Excludes statement 2, which is correct.

- Option 3: 1 and 2 – Correct, as statements 1 and 2 are true, and 3 is false.

- Option 4: 2 and 3 – Excludes the key feature of hierarchy (1) and includes the incorrect statement 3.

Correct Answer: Option 3: 1 and 2