Why most of the larger businesses are not managed
Why most of the larger businesses are not managed as the single unit through one manager?
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The three common reasons which are responsible are as follows:
a) Sheer volume of activity or number of employees employed makes it unfeasible for one person to administer them.
b) Several business operations might need specialized knowledge or expertise.
c) Geographical remoteness of portion of the business operations might make it more practical to administer each location as a separate section or set of separate sections.
Responsibility Segment: A noteworthy organizational, functional, operational, or process component that has the characteristics as: (i) Its manager reports to the entity's top management;
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Activity: The real work task or step executed in generating and delivering products and services. The aggregation of actions executed within an organization which is helpful for the purpose of activity-based costing.
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Expense: The Outflow or other using up of resources or acquiring liabilities (or a combination of both), the advantages from which exert to an entity's operations for the present accounting period, however they do not expand to future
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