In the Context of the Vertical Structure of a Firm

question 56

Multiple Choice

In the context of the vertical structure of a firm, authority refers to:

• A) the legitimate right to make decisions and to tell other people what to do.
• B) the procedures that link the various parts of the organization.
• C) the assignment of new or additional responsibilities to a subordinate.
• D) the expectation that staff will take corrective action when necessary.
• E) the reporting structure and division of labor in an organization.