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The Principle of Minimum Chain of Command States That an Organization

question 40

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The principle of minimum chain of command states that an organization should choose a hierarchy with the minimum number of levels of authority necessary to achieve its strategy.

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Definitions:

Adjusted Cash Balance

The cash balance recorded in accounting books after considering outstanding checks and deposits in transit, ensuring it matches the actual bank balance.

Check Register

A record book or electronic log used to track checks written, deposits made, and current account balances.

Bank Statement

A document or electronic record issued by a bank summarizing a customer's transactions and current balance over a specific period.

Service Charge

A fee collected for services rendered, typically added to a bill in sectors like banking, hospitality, or dining.

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