What term describes the diagram that shows the managerial structure and designated areas of responsibility?

• A. Organizational Chart
• B. Outsourcing
• C. Overhead
• D. Patent

Answer: (A)

An organizational chart visually maps the company's hierarchy, showing who reports to whom, who leads each department, and the areas of responsibility assigned to different roles. This diagram clarifies the managerial structure, displaying the chain of command and departmental boundaries in a single view. That makes it the best description for showing designated areas of responsibility and how management is arranged.

Outsourcing refers to shifting work to external suppliers, overhead means ongoing business costs like rent and utilities, and a patent is a legal protection for an invention.