When Managers Delegate Responsibility and Grant Authority to Their Subordinates

question 187

Multiple Choice

When managers delegate responsibility and grant authority to their subordinates

• A) they diminish their own capability to get things done.
• B) they diminish their own power and authority.
• C) they are still ultimately responsible for the results.
• D) good performance by subordinates will be viewed as a threat to the managers' own careers.
• E) they are using an inefficient training method.

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Definitions:

Federal Funds Rate

The interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.

Inflation Rate

The percentage change in the price level of goods and services in an economy over a given period of time.

Prime Interest Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a benchmark in lending rates.

Equation of Exchange

An economic formula representing the relationship between the supply of money in an economy and the level of prices of goods and services, expressed as M*V = P*T.