The Chain of Command Has All of the Following Characteristics

question 55

Multiple Choice

The chain of command has all of the following characteristics except

• A) solid lines in an organization chart show the chain of command.
• B) when the chain of command is not clear, many different kinds of problems can arise.
• C) it shows the flow of decision-making power in a firm.
• D) the chain of command shows both the informal and formal organizational structure.
• E) it shows the reporting relationships within a business.

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Definitions:

Exercise Price

The exercise price is the price at which an option holder can buy (call option) or sell (put option) an underlying asset or security.

Call Option

An agreement in finance that allows the owner the option, but not the requirement, to purchase a stock, bond, commodity, or different asset at a determined price during a defined timeframe.

Writer

In the context of options, the seller of an option contract who is obligated to meet the terms of the contract if the option is exercised.

Strike Price

The price at which the holder of an option contract can buy (call option) or sell (put option) the underlying asset.