Which concept describes the path of authority from the top of the organization to the bottom?

Prepare for the IGCSE Business Studies Section 2 – People in Business exam. Study with multiple choice questions and flashcards, complete with hints and explanations. Ace your exam with confidence!

Multiple Choice

Which concept describes the path of authority from the top of the organization to the bottom?

Explanation:
Chain of command describes the line of authority from the top of the organization down to the bottom. It shows who has the power to make decisions and who reports to whom, so orders and information flow through the right channels and accountability is clear. This helps ensure that management decisions are approved at the appropriate level and that everyone knows their place in the reporting structure. Span of control is about how many subordinates a manager directly oversees, which affects how many people one person can supervise. Organisational structure is the overall setup of roles and departments, of which the chain of command is a part. Level of hierarchy refers to how many levels exist in the organization, influencing how tall or flat the structure is, but not the specific path of authority itself.

Chain of command describes the line of authority from the top of the organization down to the bottom. It shows who has the power to make decisions and who reports to whom, so orders and information flow through the right channels and accountability is clear. This helps ensure that management decisions are approved at the appropriate level and that everyone knows their place in the reporting structure.

Span of control is about how many subordinates a manager directly oversees, which affects how many people one person can supervise. Organisational structure is the overall setup of roles and departments, of which the chain of command is a part. Level of hierarchy refers to how many levels exist in the organization, influencing how tall or flat the structure is, but not the specific path of authority itself.

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