The Principle of ________ Calls for Managers to Design a Hierarchy

question 26

Multiple Choice

The principle of ________ calls for managers to design a hierarchy with the fewest levels of authority necessary to efficiently and effectively use organizational resources.

• A)minimum chain of command
• B)unity of command
• C)self-managed teams
• D)centralization of power
• E)dual command

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Definitions:

Market Value

The estimated amount for which an asset or company could be sold on the open market.

Retention Ratio

The portion of a company's earnings that is not distributed as dividends but is retained by the business for reinvestment.

Retained Earnings

The portion of a company’s net profits that are kept within the company instead of being paid out to shareholders as dividends.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, often referred to as the bottom line.