Final answer:
Determining who reports to whom is part of the organizing function of management, not the controlling function, making the statement false. Dillon's Rule limits the flexibility of local governments by allowing them only to exercise powers that are expressly granted to them.
Step-by-step explanation:
Determining who reports to whom is not part of the controlling function of management; rather, it is part of the organizing function. The controlling function involves monitoring performance and making adjustments as needed, whereas the organizing function includes developing an organizational structure and determining the hierarchy within an organization, which involves reporting structures. Thus, the statement is false.
Regarding Dillon's Rule, it false that it gives local governments the freedom and flexibility to make decisions for themselves. In fact, Dillon's Rule is a legal principle that says local governments can only exercise powers expressly granted to them, or powers that are necessarily implied by the granted powers, which means it actually limits the flexibility of local governments rather than expanding it.