# A-AS Level (CIE) Business Studies Paper-1: Specimen Questions with Answers 24 - 25 of 50

## Question 24

### Explanation

A narrow span throughout an organization causes vertical structure with large number of levels in hierarchy This creates problems both in terms of cost and efficiency as extra cost is incurred on various managers sitting at different levels in hierarchy. Also, the communication must travel through scalar chain which not delays it to reach appropriate points, but it also gets distorted or manipulated. Also, the vertical structure presents problems in coordination.

A wider span of management results in find horizontal structure with few levels of hierarchy. Communication chain is shorter, though there is more cross communication. In flat structures, people feel more develop independent spirit. It also reduces cost of managing organization. To take advantage of flat structure, many large MNCs are following wide span of management. Its leader n of 8 to 10 is considered best.

## Question 25

### Explanation

One of the main characteristics of numerical data is central tendency. The point around which the observation concentrate (or cluster) lies in general, in the central part of the data. This point is called the central point or central value of the data. **The tendency of the observations to concentrate around a central point is known as central tendency**.

## Measures of Central Tendency/Statistical Average

- The statistical measure which tell us the location or position of central value or central point to describe the central tendency of the entire mass of data is known as measure of central tendency or statistical average or measure of representative value or measure of location or average of first order. Statistical average is called measure of central tendency because the individual variable values concentrate around it. The definitions and meaning of measures of central tendency or statistical average is as follows:
- “A single simple expression in which the net result of huge mass of unwieldy numerical data or a series or a frequency distribution is concentrated and which is used to represent the whole data is called a statistical average (or an average) .”