Which of the Following Statements Regarding Staff Authority Is True

question 42

Multiple Choice

Which of the following statements regarding staff authority is true?

• A) It enables those responsible for improving the effectiveness of line personnel to perform their required tasks.
• B) It involves giving orders concerning production activities.
• C) It pertains to matters directly involving management system production, sales, and finance and, as a result, the attainment of objectives.
• D) It reflects existing superior-subordinate relationships.
• E) It consists of the right to give orders within a segment of the organization in which this right is normally nonexistent.

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Definitions:

Legal Capacity

Refers to the ability of an individual or entity to enter into legally binding contracts, recognizing their rights and responsibilities.

Testamentary Trust

A trust that is created by a will and comes into effect upon the death of the person who created the will, distributing assets according to the will's provisions.

Inter Vivos Trust

A trust created during the lifetime of the grantor, allowing for the management and distribution of assets before death.

Spendthrift Trust

A legal arrangement that restricts the beneficiary's ability to access the trust capital directly, thus protecting the trust assets from creditors.