Multiple Choice
Which of the following is NOT a main factor in a business’s site selection decision?
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1. Introduction to Accounting
Business Organization
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which statement is true of a company's organization structure?
A
It only applies to companies with more than 500 employees.
B
It is not relevant to the delegation of responsibilities.
C
It is determined solely by the company's external auditors.
D
It defines the formal relationships and lines of authority within the company.
Verified step by step guidance1
Understand the concept of organizational structure: Organizational structure refers to the formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals.
Evaluate the options provided in the question: Carefully read each statement and assess whether it aligns with the definition and purpose of organizational structure.
Option 1: 'It only applies to companies with more than 500 employees.' This is incorrect because organizational structure is relevant to all companies, regardless of size.
Option 2: 'It is not relevant to the delegation of responsibilities.' This is incorrect because organizational structure directly impacts how responsibilities are delegated within a company.
Option 3: 'It is determined solely by the company's external auditors.' This is incorrect because organizational structure is determined internally by the company, not by external auditors. The correct answer is Option 4: 'It defines the formal relationships and lines of authority within the company.'
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