**Core Concept**
The liver is divided into functional zones based on its role in metabolism, detoxification, and secretion. The liver's functional divisions are essential for understanding liver physiology and pathophysiology.

**Why the Correct Answer is Right**
The liver's functional divisions are primarily based on the blood supply and the metabolic activities of the hepatocytes. The hepatic portal vein supplies the liver with nutrients from the gastrointestinal tract, and the hepatic artery supplies oxygen and nutrients to the liver cells. The liver's functional divisions include the periportal zone (also known as the periportal or zone 1), the mid-zonal area (zone 2), and the pericentral zone (zone 3). Each zone has distinct metabolic activities, with the periportal zone involved in gluconeogenesis, the mid-zonal area involved in glycogen synthesis, and the pericentral zone involved in detoxification.

**Why Each Wrong Option is Incorrect**
**Option A:** The liver's functional divisions are primarily based on the blood supply and the metabolic activities of the hepatocytes, not the location of the bile ducts.
**Option B:** The liver's functional divisions are not primarily based on the location of the hepatic veins.
**Option C:** The liver's functional divisions are not primarily based on the presence of Kupffer cells.

**Clinical Pearl / High-Yield Fact**
It is essential to understand the liver's functional divisions to diagnose and manage liver diseases, such as liver cirrhosis and liver failure. The liver's functional divisions can also be affected by various liver diseases, including viral hepatitis and alcoholic liver disease.

**Correct Answer: D.**