In the Context of the Chain of Command in an Organization

question 90

Multiple Choice

In the context of the chain of command in an organization, which of the following is a difference between line authority and staff authority?

• A) Line authority is the right to advise but not command immediate subordinates, whereas staff authority is the right to command immediate subordinates.
• B) Line authority is the right to advise people who are not subordinates, whereas staff authority is the right to command people who are not subordinates.
• C) Line authority is the right to command immediate subordinates, whereas staff authority is the right to advise but not command people who are not subordinates.
• D) Line authority is the right of top managers to advise first-line managers, whereas staff authority is the right of first-line managers to command middle managers.

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Definitions:

Investors Require

The expected return or conditions that investors seek before committing capital to an investment or project.

Current Price

Current Price is the market price at which an asset or service can be bought or sold at a particular time.

Expected Dividend

The anticipated amount that will be paid out in dividends to shareholders of a company, based on past and projected profitability.

Require a Rate of Return

The minimum expected yield by investors to compensate for the risk of an investment, influencing investment decisions and value.