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Where do committees usually sit within a firm?
AOutside the firm, as an independent regulator
BAbove the board, with power over shareholders
CInside a larger line-and-staff organization
DBelow the workers, as an appeals body only
Answer & Solution
Correct answer: C. Inside a larger line-and-staff organization
1. A committee structure is rarely the whole design of a firm.
2. Committees are typically part of a larger line-and-staff organization.
3. Their role is often only advisory, though in some situations they can make and implement decisions.
4. They are internal bodies, so external regulation and power over shareholders do not apply.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.2 Committee Structure_
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