Which of the Following Concepts Suggests That There Must Be

question 67

Multiple Choice

Which of the following concepts suggests that there must be a clear and unbroken line of authority that extends from the lowest to the highest position in the organization?

• A) The scalar principle
• B) Unity of command
• C) Entropy
• D) Synergy
• E) Decentralization

---

Definitions:

Liquidation

Liquidation is the process of bringing a business to an end and distributing its assets to claimants, often occurring when a company is insolvent.

Trustee

In a legal context, a trustee is responsible for managing the assets placed within a trust, ensuring the trust's terms are followed for the benefit of the beneficiaries.

Debtor

An individual or entity that owes money to another; a borrower in a financial transaction.

Insolvency Proceedings

Legal processes initiated when an individual or company is unable to repay their debts, leading to asset liquidation or reorganization plans.