A company that is based on a direct flow of authority from the top executive to subordinates is known as a ______ organization.
A) functional
B) line
C) matrix
D) line-and-staff

Question

Quizplus · Accepted Answer

A line organization is characterized by a direct flow of authority from the top executive to subordinates. This means that there is a clear hierarchy of authority and responsibility, with each employee reporting to a single supervisor or manager. In a line organization, decision-making and communication are typically centralized at the top, with little input or involvement from lower-level employees. This structure is often used in small businesses or in organizations with a simple and straightforward mission or product line.

A Company That Is Based on a Direct Flow of Authority