Which from the following is also known as 'Vertical Organisation'?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Line Organisation
In a line organisation authority flows straight down from the top to the bottom in a vertical line, each person taking orders from one superior only. Because of this vertical chain of command it is also called the vertical or military (scalar) organisation.
Note: This topic is not covered in any edition of the NCERT Accountancy textbook.