Which of the Following Statements Is True About the Tapered

question 19

Multiple Choice

Which of the following statements is true about the tapered concept of authority?

• A) The breadth and scope of authority widens as one descends the scalar chain.
• B) The more authority top management chooses to delegate, the more conical the scope of authority funnel becomes.
• C) The more conical the scope of authority funnel, the more decentralized is an organization.
• D) As the kinds of decisions made by the lower levels of management decreases, the degree of decentralization increases.
• E)Organizations are associated along a continuum ranging from highly centralized to highly decentralized.

---

Definitions:

Seasoned Offering

An offering of securities by a company that has previously issued securities to the public and is thus familiar to investors.

Red Herring

A preliminary prospectus distributed to prospective investors in a new issue of securities.

Preliminary Prospectus

An initial document provided by a securities issuer that details the investment offering for potential investors but is not yet approved by the relevant authority.

Seasoned Equity Offering (SEO)

A sale of equity shares by a company that has already gone public through an additional public offering.