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Excite Enterprises, a corporation of amusement parks, uses an accounting firm to handle the payroll and tax functions for the company. Using the services of another firm in this manner is an example of


A) outsourcing.
B) functional reassignment.
C) core competencies.
D) benchmarking.

E) All of the above
F) A) and D)

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An organizational hierarchy establishes one person at the top of an organization.

A) True
B) False

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When management structures the organization, it makes decisions about which products and services it will offer and how it is going to finance the company.

A) True
B) False

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Fayol believed that decision-making authority should remain in the hands of top management


A) in small organizations, but should be delegated to middle and first-line managers in large organizations.
B) in large organizations, but could be delegated to middle and first-line managers in small organizations.
C) in all types and sizes of organizations.
D) only in organizations subjected to significant government regulation.

E) B) and C)
F) A) and C)

Correct Answer

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