Each Manager in an Organization Possesses Certain Amounts of Authority

question 53

Multiple Choice

Each manager in an organization possesses certain amounts of authority. For example, the president possesses the most authority; the first-line supervisor, the least. According to Fayol, this is known as ________.

• A) unity of command
• B) esprit de corps
• C) stability of tenure
• D) scalar chain
• E) decentralization

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Definitions:

Transaction Costs

Expenses incurred when buying or selling goods and services, beyond the price of the goods themselves.

Sulfur Emissions

Gaseous emissions that include sulfur compounds, primarily sulfur dioxide, resulting from combustion processes and industrial activities.

Coase Theorem

A principle that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own, leading to an efficient outcome.

Property Rights

The legal rights to use, control, and derive benefits from a property or resource.