Fayol Believed That Decision-Making Authority Should Remain in the Hands

question 319

Multiple Choice

Fayol believed that decision-making authority should remain in the hands of top management

• A) in small organizations, but should be delegated to middle and first-line managers in large organizations.
• B) in large organizations, but could be delegated to middle and first-line managers in small organizations.
• C) in all types and sizes of organizations.
• D) only in organizations subjected to significant government regulation.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of shareholders in a company.

Balance Sheet

A financial statement that presents a company’s financial position, showing assets, liabilities, and equity at a specific point in time.

Bookkeeper

A person responsible for recording the financial transactions and maintaining the financial records of a business.

Basic Accounting Equation

An equation representing the relationship between a company's assets, liabilities, and shareholders' equity (Assets = Liabilities + Equity).