Which of the Following Methods of Allocating Authority in an Organization

question 86

Multiple Choice

Which of the following methods of allocating authority in an organization gives lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources?

• A) Tall organizational structure
• B) High span of control
• C) Centralization of authority
• D) Maximum chain of command
• E) Decentralization of authority

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Definitions:

Net Operating Income

The profit generated from a company's normal business operations, excluding expenses and revenues from investments and other non-operational sources.

Price Reduction

A decrease in the selling price of goods or services, typically aimed at increasing sales volume or clearing inventory.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding taxes and interest.

Price Hike

An increase in the price of goods or services, which can be due to various factors including increased production costs or higher demand.