2013 - JAMB Commerce Past Questions and Answers - page 5

Money is a widely accepted medium of exchange, and it serves as a means of settling debts and obligations.

A line structure is typically the most suitable organizational structure for small or medium-sized enterprises (SMEs). Here's why: * **Simplicity:** Line structures are straightforward and easy to understand. This is beneficial for SMEs as it reduces the complexity of management. * **Clear lines of authority:** It establishes a clear chain of command, which is crucial for quick decision-making and accountability, something that SMEs often need to be agile. * **Cost-effectiveness:** Line structures are less expensive to implement and maintain than more complex structures. * **Direct Supervision:** With fewer layers, managers can directly supervise employees, leading to better control and communication. The other options are less suitable: * **Staff structure:** This structure provides advisory roles but lacks direct authority. * **Committee