An Employee Works for a Company That Has Clearly Defined

question 38

Multiple Choice

An employee works for a company that has clearly defined lines of authority. Employees should know that they have authority and responsibility for distinct sets of tasks. Employees should also be aware of the company's reporting structure and its successive management levels all the way to the top. The company follows which principle

• A) Specialization principle
• B) Unity of command principle
• C) Scalar principle
• D) Authority principle
• E) Responsibility principle

---

Definitions:

Level of Competition

The intensity of rivalry among businesses in the same industry, which can affect market share, pricing strategies, and innovation efforts.

Price Wars

A competitive strategy involving several companies lowering their prices in an attempt to undercut competitors, potentially leading to lower profit margins for all involved.

Market Segment

A subgroup of people or organizations with shared characteristics within a broader market that businesses target with specific products or marketing.

Promotion

All the activities that communicate the value of a product and persuade customers to buy it.