Accounting Multiple Choice Question – 10 July 2024

The human resources director of Alex plc wants new recruits in all areas of the company to have a copy of a chart showing its formal organisation structure.

Identify which of the following statements about the chart made by the director are true.

I  The chart will show the degree of decentralisation in Alex plc.

II  The chart will show the span of control in Alex plc.

III  The chart will show the scalar chain in Alex plc.

Select ONE answer:

1. I and II only
2. II and III only
3. I and III only
4. I and II and III

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Notcorrect
2. Correct  –>  The degree of decentralisation is a measure of how power and authority are passed down an organisation. This is not shown on an organisation chart, which concentrates on the shape of the organisation. The span of control refers to the number of subordinates working for a superior, while the scalar chain is the formal arrangement of authority or the organisation hierarchy. Both are shown not the chart.
3. Not correct
4. Not correct

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