CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading
A Hyderabad firm has 1 chief executive and 3 levels below, with each manager at every level supervising exactly 4 subordinates. How many employees are at the lowest (third) level below the chief executive?
There are 64 employees at the lowest level. With a span of four, level one has 4 people, level two has 16, and level three has 64, which equals 4 cubed. Total employees below the chief executive would be 84, but the question asks only for the lowest level.
- A64Correct
- B48
- C16
- D256
Explanation
The CEO has 4 direct subordinates at level 1, 4 x 4 = 16 at level 2, and 16 x 4 = 64 at level 3. Check: 4^3 = 64. The figure 48 wrongly adds 16 + 32, and 256 wrongly uses a fourth level.
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