The "Minimum Chain of Command" Principle States That Firms Should

question 32

Multiple Choice

The "minimum chain of command" principle states that firms should use the __________ levels of hierarchy that are necessary, and often result in organizational structures that are __________.

• A) most; taller
• B) fewest; taller
• C) minimum; ineffective
• D) minimum; flatter
• E) highest; flat

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Liability and Asset Accounts

Accounts on a balance sheet that represent obligations to pay others (liabilities) and resources owned by a company (assets).

Financial Statements

Official accounts detailing the economic operations and condition of an enterprise, person, or any other unit.

Unearned Legal Fees

Money received by an entity for legal services yet to be performed, recognized as a liability until the services are rendered.