Final answer:
Option (A), The statement is true; as a company grows, it becomes necessary to create an organizational chart to clarify the hierarchy and reporting relationships.
Step-by-step explanation:
The statement that as a company grows, it becomes necessary to create an organization chart to show relationships among people, to determine who is accountable for the completion of specific work, and to show who reports to whom, is true.
An organizational chart is a visual representation of a company's hierarchical structure and provides clarity on the chain of command and communication processes within the organization. This is especially critical in larger companies where roles and responsibilities might be more diffuse. The benefits of an organizational chart include helping employees understand their place within the company, who to refer to for certain issues, and the accountability structure.
However, it's important to note the trend towards flatter organizational structures, where there may be a move towards more team-based approaches and two-way communication between employees and management. Even so, organizational charts are still used to delineate the structure of an organization and help build efficiency, ensure equal opportunities, and guide employees in understanding their roles and relationships within the corporate hierarchy.