Chain of Command Is a Key Element of an Organization's

question 23

Multiple Choice

Chain of command is a key element of an organization's structure. Which of the following key questions is addressed by this element?

• A) How many individuals can a manager efficiently and effectively direct?
• B) To whom do individuals and groups report?
• C) On what basis will jobs be grouped together?
• D) To what degree are activities subdivided into separate jobs?
• E) To what degree will there be rules and regulations to direct employees and managers?

---

Definitions:

Life Insurance Reserves

Financial reserves that life insurance companies must hold to ensure they can meet future policyholder obligations.

Mutual Fund Shares

Shares that represent an investor's ownership in a mutual fund and the income it generates.

Derivative Security

A security whose payoff depends on the value of other financial variables such as stock prices, interest rates, or exchange rates.

Related Security

A financial instrument that is linked to another in terms of price movement or interest rate changes, like options or futures tied to a specific stock.