Which concept shows the layers of authority within a business?

Which concept shows the layers of authority within a business?

• A. Commerce
• B. Span of Control
• C. Chain of Command
• D. Subordinates

Answer: (C)

The main idea being tested is how authority is arranged in a business—the chain of command. It shows the levels of authority and who is responsible for whom, from the top of the organization down to frontline staff. This structure ensures orders come from the appropriate level and that there’s clear accountability, with information and decisions flowing along the same vertical path. This concept specifically maps the hierarchy, like a CEO setting directives that pass to department heads, then to managers, and so on. That vertical line of authority is what lets a business run smoothly and reduces confusion about who has the power to make decisions. By comparison, commerce is about buying and selling, which isn’t about who has authority. Span of control describes how many people report directly to a single manager—which is about how wide the manager’s sphere is, not the layered levels of authority. Subordinates are the people lower in the hierarchy, but they’re the recipients within the structure, not the structure itself.

The main idea being tested is how authority is arranged in a business—the chain of command. It shows the levels of authority and who is responsible for whom, from the top of the organization down to frontline staff. This structure ensures orders come from the appropriate level and that there’s clear accountability, with information and decisions flowing along the same vertical path.

This concept specifically maps the hierarchy, like a CEO setting directives that pass to department heads, then to managers, and so on. That vertical line of authority is what lets a business run smoothly and reduces confusion about who has the power to make decisions.

By comparison, commerce is about buying and selling, which isn’t about who has authority. Span of control describes how many people report directly to a single manager—which is about how wide the manager’s sphere is, not the layered levels of authority. Subordinates are the people lower in the hierarchy, but they’re the recipients within the structure, not the structure itself.