The Idea That an Organization's Hierarchy Should Be Designed with as Few

question 67

Multiple Choice

The idea that an organization's hierarchy should be designed with as few levels of authority as are necessary to use the organization's resources in an efficient and effective manner falls under which of the following principles?

• A) Span of control
• B) Centralization
• C) Minimum chain of command
• D) The unity of command

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Definitions:

Net Income

The remaining earnings of a business after subtracting all expenditures and taxes from its total income.

Financial Position

A snapshot of a company's assets, liabilities, and equity at a specific point in time, indicating the financial health and stability of the entity.

Operating Cash Flow

The cash generated from a company's normal business operations, reflecting how much cash is generated from revenues after operating expenses.

Tax Rate

The specified percentage of incomes that the government earmarks for collection from individuals or corporations as taxes.