CAIB 4 Chapter 2 Exam Study Guide
Questions With 100% Complete Solution
Organizingiinvolvesideterminingitheiwayitheibrokera
ge'siactivitiesiwillibeidividediintoimanageableiunits.iI
dentifyi3ielementsitoiorganizingieffectively.i-
iCorrectiAnswer-
1.iCreatingianiOrganizationaliStructurei
2.iDefiningiemployeeirelationships
3.EstablishingiPositioniDescriptions
Identifyi3ibasiciformsiofiorganizationalistructureibas
edionitheiwayiauthorityiandiresponsibilityiisidelegate
d.i-iCorrectiAnswer-1.iLineiOrganization-
ibestisuitediforismalleribrokeragesiiniwhichiseniorim
anagementipersonallyidirectsitheiactivitiesiofisubord
inates.i
2.iFunctionaliOrganization-
Departmentsiareiheadedibyispecialistsiwhoihaveiauth
orityioveriaispecificiareaiofioperation.iEmployeesirep
ortitoitheiriimmediateidepartmentimanager.
3.LineiandiStaffiOrganization-
ithisicombinesibothiformsiofiorganizationistructure.i
Sales,iserviceiandifinancialimanagementiareitreatedi
asilineimanagement.iThoseiwhoisupportitheilineiareis
taff.itheitrainingimanageriisionlyiableitoiadviseitheioff
iceiandisalesimanager.
Whatitypeiofibrokerageiisisuitediforilineiorganizationi
andiwhy?i-iCorrectiAnswer-
Bestisuiteditoismalleribrokerageiiniwhichisenioriman
agementipersonallyidirectsitheiactivitiesiofiothers.
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, Identifyi3iadvantagesiofitheilineiorganization.i-
iCorrectiAnswer-1.iSimplicity
2.iClearidelegationiofiauthority
3.iQuickiDecisioniMaking
Identifyi3idisadvantagesiofilineiorganization.i-
iCorrectiAnswer-
1.iLineimanagersimustibeiexpertsiinialliareasitoimakei
decisions.i
2.iPoweriisiconcentratediatitheitopib/
ciseniorimanagementiisiinvolvediiniallidecisionimakin
gi
3.Itilimitsigrowthiandidevelopmentiofiemployeesibyist
iflingiinnovation.
Identifyiwhyitheifunctionaliorganizationiformiwasicre
ated.i-iCorrectiAnswer-
Theifunctionaliorganizationiwasicreateditoiovercomei
theikeyiweaknessesiofitheilineiorganizationiwhichiisit
heiconcentrationiofitooimaniactivitiesianditooifewima
nagers.
Identifyioneiadvantageiofiaifunctionaliorganizationi-
iCorrectiAnswer-
1.iProvidesiemployeesiwithiexpertiadvice.
Identifyi3idisadvantagesiofiaifunctionaliorganizationi
-iCorrectiAnswer-
1.iSinceithereiisimoreithanioneiboss,iareasiofioverlapp
ingiauthorityistaffimayireceiveiconflictingioriinconsis
tentiinstructions.
2.iDecision-
makingicanibeislowiwheniaidecisioniisirequiredithatid
oesinotifirmlyibelongitoianyioneimanager.iEmployeesi
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
Questions With 100% Complete Solution
Organizingiinvolvesideterminingitheiwayitheibrokera
ge'siactivitiesiwillibeidividediintoimanageableiunits.iI
dentifyi3ielementsitoiorganizingieffectively.i-
iCorrectiAnswer-
1.iCreatingianiOrganizationaliStructurei
2.iDefiningiemployeeirelationships
3.EstablishingiPositioniDescriptions
Identifyi3ibasiciformsiofiorganizationalistructureibas
edionitheiwayiauthorityiandiresponsibilityiisidelegate
d.i-iCorrectiAnswer-1.iLineiOrganization-
ibestisuitediforismalleribrokeragesiiniwhichiseniorim
anagementipersonallyidirectsitheiactivitiesiofisubord
inates.i
2.iFunctionaliOrganization-
Departmentsiareiheadedibyispecialistsiwhoihaveiauth
orityioveriaispecificiareaiofioperation.iEmployeesirep
ortitoitheiriimmediateidepartmentimanager.
3.LineiandiStaffiOrganization-
ithisicombinesibothiformsiofiorganizationistructure.i
Sales,iserviceiandifinancialimanagementiareitreatedi
asilineimanagement.iThoseiwhoisupportitheilineiareis
taff.itheitrainingimanageriisionlyiableitoiadviseitheioff
iceiandisalesimanager.
Whatitypeiofibrokerageiisisuitediforilineiorganizationi
andiwhy?i-iCorrectiAnswer-
Bestisuiteditoismalleribrokerageiiniwhichisenioriman
agementipersonallyidirectsitheiactivitiesiofiothers.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
, Identifyi3iadvantagesiofitheilineiorganization.i-
iCorrectiAnswer-1.iSimplicity
2.iClearidelegationiofiauthority
3.iQuickiDecisioniMaking
Identifyi3idisadvantagesiofilineiorganization.i-
iCorrectiAnswer-
1.iLineimanagersimustibeiexpertsiinialliareasitoimakei
decisions.i
2.iPoweriisiconcentratediatitheitopib/
ciseniorimanagementiisiinvolvediiniallidecisionimakin
gi
3.Itilimitsigrowthiandidevelopmentiofiemployeesibyist
iflingiinnovation.
Identifyiwhyitheifunctionaliorganizationiformiwasicre
ated.i-iCorrectiAnswer-
Theifunctionaliorganizationiwasicreateditoiovercomei
theikeyiweaknessesiofitheilineiorganizationiwhichiisit
heiconcentrationiofitooimaniactivitiesianditooifewima
nagers.
Identifyioneiadvantageiofiaifunctionaliorganizationi-
iCorrectiAnswer-
1.iProvidesiemployeesiwithiexpertiadvice.
Identifyi3idisadvantagesiofiaifunctionaliorganizationi
-iCorrectiAnswer-
1.iSinceithereiisimoreithanioneiboss,iareasiofioverlapp
ingiauthorityistaffimayireceiveiconflictingioriinconsis
tentiinstructions.
2.iDecision-
makingicanibeislowiwheniaidecisioniisirequiredithatid
oesinotifirmlyibelongitoianyioneimanager.iEmployeesi
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
