Which of the Following Statements Explains the Unity of Command

question 272

Multiple Choice

Which of the following statements explains the unity of command principle of management?

• A) All workers must share the same goal.
• B) Every firm has one strong leader, and everyone should support that individual.
• C) Workers can become frustrated and confused if they have more than one boss.
• D) All authority should rest with top management, since only top managers carry the responsibility of bad decisions.

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Definitions:

Output Effect

The change in total revenue generated by selling an additional unit of a product or service.

Substitution Effect

The economic understanding that as prices rise or income decreases, consumers will replace more expensive items with cheaper alternatives.

Price of Capital

The cost of using capital assets, which can include interest rates on loans used to purchase the assets or opportunity costs of investing capital elsewhere.

Demand for Labor

The total amount of labor that employers want to hire at varying wage rates in a given time period.