Firms Operating at 100% Capacity

question 72

Multiple Choice

Firms operating at 100% capacity

• A) are common.
• B) are the exception rather than the rule.
• C) have no fixed costs.
• D) have no variable costs.

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Definitions:

Small Organizations

Entities typically characterized by a limited number of employees, a specific niche market focus, or a restricted operational scale compared to larger corporations.

Henry Fayol

A French engineer and a key figure in the development of classical management theory, known for his 14 principles of management.

Authority

describes the power or right given to individuals or entities to make decisions, issue orders, and enforce obedience.

Unity of Command

A principle in management stating that each employee should report to one and only one supervisor, to avoid confusion and conflict.