MANAGEMENT

BUISENESS MANAGEMENT

BUSINESS STRUCTURE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The direct authority that affects a business’ day to day operations is called:
A
Staff authority
B
Responsibility
C
Line authority
D
Span of control
Explanation: 

Detailed explanation-1: -Line authority is the heart of the relationship between superiors and subordinates. So line authority’ is the direct authority which a superior exercises over his subordinates to carry out orders and instructions. This authority creates a direct relationship between a superior and his subordinates.

Detailed explanation-2: -The chain of command within an organization that confers the power to order subordinates to perform a task within their job description.

Detailed explanation-3: -One of the simplest types of organization structure is a line organization. It is also known as the hierarchical form of organization.

Detailed explanation-4: -To repeat, Line authority is the power to make decisions and issue orders in an organization. Staff authority is the power to advise and provide specialized services to the line authority. Functional authority is a restricted line authority where a staff person has the power to make decisions within their department.

Detailed explanation-5: -A simple example of a line of authority in a line organizational structure would be a company with a Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief Operating Officer (COO).

There is 1 question to complete.