--%>

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?

E

Expert

Verified

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.

   Related Questions in Managerial Accounting

  • Q : Define Variance Variance : The rate,

    Variance: The rate, amount, extent, or degree of change, or the divergence from a preferred state or characteristic.

  • Q : Techniques to liberate the function of

    Write down the different techniques employed to liberate the function of management accounting?

  • Q : Main working areas of the Routing and

    Write a short note on the main working areas of the Routing and personnel department?

  • Q : Capital account An account used in a

    An account used in a partnership to record an individual partner's investment in the partnership plus the indi- vidual's share of any undistributed partnership income. In a corpo- ration, the equity sections have two parts: the contributed capital and retained earning

  • Q : Partners-firm and firms name What do

    What do you understand by the terms partners, firm and firms name? Answer: The persons who have entered into a Partnership with each other are individually termed 'P

  • Q : Things which Strengths comprises Write

    Write a brief note on the things which Strengths comprises?

  • Q : Define Inter-Entity Inter-Entity : A

    Inter-Entity: A term meaning between or among distinct federal reporting entities. It generally refers to the activities or costs among two or more agencies, bureaus or departments.

  • Q : Budgetary accounts Accounts used in

    Accounts used in governmental accounting to record the budget amounts but not the actual amount. For example, at the beginning of the accounting period, the planned amount of tax revenue, revenue from license, and inflows from fines would be recorded as one amount in

  • Q : Actual costing A function of measuring

    A function of measuring and assigning production costs to determine the unit cost. Actual revenue assigns the real cost of materials, labor, and overhead to ma

  • Q : Explain Responsibility Segment

    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;