What Is the Principal Difference Between Line and Staff Activities

question 3

Multiple Choice

What is the principal difference between line and staff activities?

• A) A line activity supports all other activities in getting the actual work done.
• B) Line activities do the work; staff activities support the line activities.
• C) There is essentially no difference between line and staff.
• D) Employees in staff activities do the actual work of the organization.

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Definitions:

Equilibrium Interest Rate

The interest rate at which the demand for funds equals the supply of funds, balancing savings and investments in an economy.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied.

Loanable Funds

The money available in the banking system for lending to businesses or consumers, influenced by interest rates and monetary policy.

Demand for Loanable Funds

The Demand for Loanable Funds represents the relationship between the interest rate and the total amount of loans that borrowers are willing to take at that rate.