Edward is hired to manage Fred's business.Which of the following is untrue regarding Edward's authority?
A) Edward can enter into contract with wholesalers for merchandise in the store.
B) Edward can hire employees, but he cannot fire them without Fred's consent.
C) Edward has authority to sell a used cash register when he buys a new computerized checkout system for the store.
D) Edward has authority to send bills to customers and to accept payments on behalf of Fred.

Question

Quizplus · Accepted Answer

Edward, as the manager of Fred's business, would typically have the authority to both hire and fire employees as part of managing the day-to-day operations of the business. The other options (A, C, D) are usual managerial tasks that involve entering into contracts, upgrading equipment, and managing finances, which fall within the scope of a manager's authority.

Edward Is Hired to Manage Fred's Business