Which of the Following Statements Most Closely Identifies the Problem

question 124

Multiple Choice

Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?

• A)Leaving some decision-making power to middle management had the effect of minimizing the effort and results that management would put into the other historical principles of organization
• B)The rule making that developed from these principles created organizations that didn't respond quickly to customer needs
• C)The principles of Fayol and Weber hampered a firm's ability to determine if it was profitable
• D)Authority and responsibility quickly became unrelated

---

Definitions:

Callable Bond

A type of bond that gives the issuer the right to repay the bond before its maturity date, usually at a specified call price.

Redeem

The act of exchanging something, such as a coupon or financial securities, for a specific value or service.

Maturity Date

is the specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate.