Line Authority Is Best Defined as a Manager's Right to ________

question 89

Multiple Choice

Line authority is best defined as a manager's right to ________.

• A) use flexible decision-making powers
• B) advise other managers or employees
• C) advocate on behalf of his or her department
• D) issue orders to other managers or employees

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Definitions:

Working Capital

Current assets less current liabilities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Acid-Test Ratio

A financial ratio indicating a firm's capacity to settle short-term debts without having to sell its stock.

Marketable Securities

Financial instruments that can be easily converted to cash, such as stocks, bonds, and Treasury bills.