Internal Organisation
Practice Questions

✓ Answer: D — Chain of command

Award 1 mark for 'chain of command'. The chain of command refers to the formal line of authority that runs from the top of an organisation downward, showing who gives instructions to whom at each level. A is incorrect — span of control refers to the number of subordinates a manager directly supervises, not the vertical path of authority. C confuses the informal or general flow of information with the formal authority structure. D is incorrect — the scalar principle is the underlying concept that authority should flow in an unbroken line, but the named structure itself is the chain of command.

✓ Answer: A — Functional organisational structure

Award 1 mark for identifying the functional structure. In a functional structure, the business is divided into departments based on specialist functions such as production, sales, and finance — each headed by a manager with expertise in that area. B is incorrect because a line and staff structure combines direct authority with advisory roles (staff specialists), which is not described here. C confuses the matrix structure, which involves employees reporting to both a functional manager and a project manager simultaneously, with the straightforward departmental grouping described. D is incorrect because centralisation refers to where decision-making authority is held, not how the organisation is divided into departments.