In the Context of the Vertical Structure of a Firm

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.