What Is Authority That Flows Up and Down the Chain

question 21

Multiple Choice

What is authority that flows up and down the chain of command called?

• A) staff authority
• B) departmental authority
• C) delegated authority
• D) divisional authority
• E) line authority

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Definitions:

Lockbox System

A banking service offered to businesses for collecting payments from clients, using a dedicated post office box to accelerate the process of gathering checks.

Treasury Bills

Short-term government securities with maturity periods typically less than a year, considered very safe investments.

Target Cash Balance

An optimal amount of cash that a company aims to hold to minimize costs while avoiding liquidity issues.

Average Daily Float

The average amount of uncollected funds in a company's bank account, representing checks issued but not yet cleared.