The Relative Authority That Each Manager in the Organization Has

question 14

Multiple Choice

The relative authority that each manager in the organization has from the CEO down to the lowest-level manager is called the ________________.

• A) span of control
• B) unity of command
• C) corporate ladder
• D) unity of direction
• E) chain of command

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually out of profits or reserves.

Working Capital

Current assets minus current liabilities, representing the short-term liquidity and operational efficiency of a business.

Current Ratio

An indicator of financial health showing whether a business can cover its short-term debts with assets that can be quickly converted into cash.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities.