Henri Fayol's Belief in the Importance of Allowing Employees to Initiate

question 15

Multiple Choice

Henri Fayol's belief in the importance of allowing employees to initiate and carry out plans, thus encouraging high levels of effort, is reflect in which of his principles of management?

• A) equity
• B) order
• C) esprit de corps
• D) initiative

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Definitions:

Sales Variance

Sales variance is the difference between actual sales and budgeted or planned sales, used to assess performance.

Variable Costs

Costs that vary directly with the level of production or business activity.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, or insurance premiums.

Sales Volumes

The quantity or number of products sold or services rendered in a particular period of time.