Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

The Formal lines of authority from highest to lowest ranks are known as:

Options:

Scalar Chain

Delegation of Authority

Decentralisation of Authority

Unity of Command

Correct Answer:

Scalar Chain

Explanation:

An organisation consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are known as scalar chain. According to Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.”