Fayol's Principle of Initiative Suggests That

question 98

Multiple Choice

Fayol's principle of initiative suggests that:

• A) employees ought to be closely monitored.
• B) managers should encourage employees to be innovative and creative.
• C) managers should ensure that the tasks and roles of each employee are clearly specified.
• D) authority should be concentrated at the top of the hierarchy.
• E) managers should use rewards and punishments to control the behavior of employees.

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Definitions:

Capital Investment

Funds invested in a business by the owners or shareholders to purchase assets or to provide working capital with the aim of generating long-term revenue and profits.

Net Loss

The result when a company's total expenses exceed its total revenues during a specific period, indicating a negative financial performance.

Capital Balance

The amount of money invested in a business by its owners plus any retained earnings or minus any losses.

Partnership Net Income

The total earnings derived from a partnership's business operations after subtracting all expenses, shared among the partners according to their agreement.