Which One of Fayol's 14 Principles of Management Helps Preserve

question 145

Multiple Choice

Which one of Fayol's 14 principles of management helps preserve the concept of a continuous line of authority?

• A) hierarchy of responsibility
• B) unity of command
• C) chain of authority
• D) flow of delegation
• E) span of control

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Definitions:

Risk-Free Rate

The earnings from an investment that carries no possibility of losing money, usually linked to government-issued bonds.

Weighted Average Cost

A method used to calculate the average cost of a group of assets, taking into account the varying weights of each asset.

Systematic Risk

The type of risk inherent to the entire market or market segment, which cannot be mitigated or eliminated through diversification.

Cost of Equity

The return a company theoretically pays to its equity investors to compensate them for the risk they undertake by investing in the company's stock.