The Unity-Of-Command Principle States Which of the Following

question 123

Multiple Choice

The unity-of-command principle states which of the following?

• A) Managers should provide direction to their employees in a unified fashion.
• B) Managers should limit their oversight to a maximum of 12 employees.
• C) An individual should be directly responsible to only one supervisor.
• D) Employees should report directly to two supervisors to maintain task balance.
• E) Managers should oversee 1 - 4 employees on average.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, which is recognized in the financial statements as an expense.

Times Interest Earned Ratio

A financial metric that measures a company's ability to cover its interest expenses with its earnings before interest and taxes.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that is financed by stockholders' equity.