Which of the Following Statements Most Closely Identifies the Problem

question 284

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.

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Definitions:

Consolidated Financial Statements

Financial statements that show the financial position and results of operations for a parent company and its subsidiaries as one economic entity.

Elements of Control

Factors or conditions that grant an entity the power to govern the financial and operating policies of another entity, typically to benefit from its activities.

Relevant Activities

Activities that significantly affect the returns of an investment or project under consideration.

Funding Structure

Refers to the composition of an organization’s capital, including the mix of its debt and equity financing.