Final answer:
The function that refers to the setting of reporting and responsibility relationships within a manager's unit is Organizing (B). It involves creating a hierarchy of authority and clarifying reporting structures and relationships, thereby defining roles and expectations within the business organization.
Step-by-step explanation:
The function that refers to the setting of reporting and responsibility relationships within a manager's unit is Organizing (B). The organizing function of management involves setting up the internal structural organization of the company. Organizing includes the development of a hierarchy of authority, establishing reporting relationships and lines of communication, as well as the distribution of work within the unit.
Knowing the structure of the organization helps employees understand their responsibilities, who they report to, and how their work fits into the overall goals of the company.