1.4 Business key terms (part 2)

Question 1

authority

Answer 1

the right to command and make decisions

Question 2

centralisation

Answer 2

a type of business organisation where major decisions are made at the center or core of the organisation and then passed down to the chain of command

Question 3

chain of command

Answer 3

the way authority and power is organised in an organisation

Question 4

decentralisation

Answer 4

a type of business organisation where decision making is pushed down the chain of command and away from the center of the organisation

Question 5

delayering

Answer 5

removing layers of management from the hierarchy of an organisation

Question 6

delegation

Answer 6

authority is passed down from superior to subordinate

Question 7

formal organisation

Answer 7

the internal structure of a business as shown by an organizational chart

Question 8

hierarchy

Answer 8

the order or levels of responsibility in an organisation, from the lowest to the highest

Question 9

organisational chart

Answer 9

a diagram that shows the different job roles in a business and how they relate to each other

Question 10

responsibility

Answer 10

the duty to complete a task

Question 11

span of control

Answer 11

the number of people a person is directly responsible for in a business

Question 12

subordinates

Answer 12

people in the hierarchy who work under the control of a senior worker