The _____ Principle States That Everyone in an Organization Should

question 76

Multiple Choice

The _____ principle states that everyone in an organization should report to and be accountable to only one boss for performing a given activity.

• A) span of control
• B) functional authority
• C) limited line authority
• D) unity of command

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Definitions:

Stock Price

The cost of purchasing a share of a company, which fluctuates based on supply and demand in the stock market.

Treasury Shares

Shares that were issued and later repurchased by the issuing company, reducing the amount of outstanding stock.

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership equity spread among shareholders.

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders in the form of cash.