If Companies Follow the Theories of Fayol and Weber, Which

question 68

Multiple Choice

If companies follow the theories of Fayol and Weber, which of the following scenarios is likely to result?

• A) Organization design will benefit by the emergence of quick decision making.
• B) Organization design will eliminate systems of hierarchy and chains of command due to their hindrance of esprit de corps.
• C) Organizations that grow will develop several layers of management and the time that it takes to make and carry out a decision will increase.
• D) There will be a significant reduction of workforce due to specialization and departmentalization.

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Definitions:

GAAP Requirements

The standards or guidelines for financial accounting and reporting that accountants are required to follow, known as Generally Accepted Accounting Principles.

Vacation Pay

Compensation paid to employees for days they are entitled to take off work but choose to work instead or as a benefit for days they are allowed not to work.

Sick Pay

Compensation provided by an employer to an employee who is absent from work due to illness.

Accrual

Accrual accounting is an accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction occurs.