The Most Fundamental Authority in an Organization, Consisting of the Right

question 28

Multiple Choice

The most fundamental authority in an organization, consisting of the right to make decisions and to give orders concerning the production-, sales-, or finance-related behavior of subordinates, is ________.

• A) functional authority
• B) staff authority
• C) traditional authority
• D) line authority
• E) informal authority

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Definitions:

Useful Life

The estimated duration an asset is expected to be functional and useful before it needs to be replaced or becomes obsolete.

Operating Cost

Expenses associated with the day-to-day functions of a business excluding cost of goods sold, such as rent, utilities, and payroll.

Value-Based Pricing

A pricing strategy where the price of a product or service is determined based on the perceived value to the customer rather than the cost of production.

Required Return

The minimum expected return by investors for investing in a particular security or project, reflecting the risk level.