Which of the Following Is a Disadvantage of Line-And-Staff Structures

question 13

Multiple Choice

Which of the following is a disadvantage of line-and-staff structures?

• A)They result in both line and staff managers performing the same functions or tasks.
• B)They are limited to small organizations.
• C)They allow staff managers to have direct authority over line managers.
• D)They create ambiguous lines of communication.
• E)They fail to allow managers to have direct authority over subordinates in their own departments.

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Definitions:

Signalling Theory

A concept in economics and finance suggesting that one party credibly conveys some information about itself to another party.

Investment Opportunities

Options available to individuals or entities to invest capital with the expectation of a future financial return.

Dividend Reinvestment Plans

Investment plans that allow shareholders to automatically reinvest their cash dividends in additional shares of the company's stock, usually without commission.

Strict Residual Dividend Policy

A dividend policy in which dividends are based on the earnings left over after all operating expenses, taxes, and project investments are covered.