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CAIB 4 - Chapter 2 2025 Actual with Questions &
Answers (Latest Update) 100%
Guarantee Pass (Verified Answers)
Organizing involves determining the way the brokerage's activities will be divided
into measurable units. Identify the three elements to organizing effectively. -
...(ANSWERS)....1. Creating an Organizational Structure
2. Defining Employee Relationships
3. Establishing Position Descriptions
The organizational structure is the skeleton upon which the brokerage grows and
interacts. The structure also defines who has authority and responsibility for
activities. Identify three basic forms of organizational structure based on the way
authority and responsibility is delegated. - ...(ANSWERS)....1. Line Organization
2. Functional Organization
3. Line and Staff Organization
Identify which type of brokerage is best suited for a line organization. Briefly
explain why this is so. - ...(ANSWERS)....Best suited to a smaller brokerage in
which senior management personally directs the activities of subordinates. This
organizational form presumes that the senior executives are fully familiar with all
aspects of the brokerage's business, as all decisions are made directly by them. In
a line organization, each subordinate has only one person to whom they are
responsible.
Identify three advantages of the line organization - ...(ANSWERS)....1. Simplicity
2. Clear delegation of authority
, 2
3. Quick decision making
Identify three disadvantages of the line organization - ...(ANSWERS)....1. Line
managers must be fully knowledgeable in a wide range of areas in order to be
able to make decisions.
2. Power is concentrated at the top because senior management must be
involved in all decisions.
3. It limits the growth and development of employees by stifling innovation.
Identify why the functional organization form was created. - ...(ANSWERS)....To
overcome the key weakness of the line organization which is the concentration of
too many activities in too few managers.
Identify two advantages of a functional organization - ...(ANSWERS)....1. Provides
employees with expert advice
2. Decisions are made by a management specialist
Identify three disadvantages of a functional organization - ...(ANSWERS)....1.
Employees will find that they have more than one "boss", so that in areas of
overlapping authority they may be given conflicting or inconsistent instructions.
2. When a decision is required that does not firmly belong to any one manager,
decision-making can be slow. Employees may be referred by one manager to
another without any decision being made.
3. When there are too many managers giving instructions, employees are
frequently distracted from their primary roles of serving their clients.
CAIB 4 - Chapter 2 2025 Actual with Questions &
Answers (Latest Update) 100%
Guarantee Pass (Verified Answers)
Organizing involves determining the way the brokerage's activities will be divided
into measurable units. Identify the three elements to organizing effectively. -
...(ANSWERS)....1. Creating an Organizational Structure
2. Defining Employee Relationships
3. Establishing Position Descriptions
The organizational structure is the skeleton upon which the brokerage grows and
interacts. The structure also defines who has authority and responsibility for
activities. Identify three basic forms of organizational structure based on the way
authority and responsibility is delegated. - ...(ANSWERS)....1. Line Organization
2. Functional Organization
3. Line and Staff Organization
Identify which type of brokerage is best suited for a line organization. Briefly
explain why this is so. - ...(ANSWERS)....Best suited to a smaller brokerage in
which senior management personally directs the activities of subordinates. This
organizational form presumes that the senior executives are fully familiar with all
aspects of the brokerage's business, as all decisions are made directly by them. In
a line organization, each subordinate has only one person to whom they are
responsible.
Identify three advantages of the line organization - ...(ANSWERS)....1. Simplicity
2. Clear delegation of authority
, 2
3. Quick decision making
Identify three disadvantages of the line organization - ...(ANSWERS)....1. Line
managers must be fully knowledgeable in a wide range of areas in order to be
able to make decisions.
2. Power is concentrated at the top because senior management must be
involved in all decisions.
3. It limits the growth and development of employees by stifling innovation.
Identify why the functional organization form was created. - ...(ANSWERS)....To
overcome the key weakness of the line organization which is the concentration of
too many activities in too few managers.
Identify two advantages of a functional organization - ...(ANSWERS)....1. Provides
employees with expert advice
2. Decisions are made by a management specialist
Identify three disadvantages of a functional organization - ...(ANSWERS)....1.
Employees will find that they have more than one "boss", so that in areas of
overlapping authority they may be given conflicting or inconsistent instructions.
2. When a decision is required that does not firmly belong to any one manager,
decision-making can be slow. Employees may be referred by one manager to
another without any decision being made.
3. When there are too many managers giving instructions, employees are
frequently distracted from their primary roles of serving their clients.
