Day: February 24, 2022

Decentralization can be viewed as an extension of delegation. This is where purchasing functions and activities are divided into relatively autonomous units with overall authority and responsibility for the operations delegated to lower levels of authority. The degree of decentralization Read More …

Decentralized purchasing is just the reverse of centralized purchasing. This is suitable in organizations running more than one plant. Under this type each plant has its own purchasing agents. In other words, every department makes its own purchases. This is Read More …

Under centralized purchasing, purchases are made at one central point for the whole organisation and material is issued to respective departments or jobs as and when needed. Centralized purchasing is suitable in cases where the organisation runs one plant. It Read More …

A business owned by the government and run by Directors appointed by the government. These businesses usually include the water supply, electricity supply, etc. The government gives the directors a set of objectives that they will have to follow: To Read More …

A cooperative is a business organization owned by a group of individuals and is operated for their mutual benefit. The persons making up the group are called members. Cooperatives may be incorporated or unincorporated. Some examples of cooperatives are: water Read More …

Public limited companies are similar to private limited companies, but they are able to sell shares to the public. A private limited company can be converted into a public limited company by: 1. A statement in the Memorandum of Association Read More …

Private Limited Companies have separate legal identities to their owners, and thus their owners have limited liability. The company has continuity, and can sell shares to friends or family, although with the consent of all shareholders. This business can now Read More …

A partnership is a business owned by two or more persons who contribute resources into the entity. The partners divide the profits of the business among themselves. There are different types of partnerships—general partnership, limited partnership, and limited liability partnership—the Read More …

A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly among all forms of ownership. The owner faces unlimited liability; meaning, the creditors of the business may go after Read More …

There are three major types of businesses: 1. Service Business A service type of business provides intangible products (products with no physical form). Service type firms offer professional skills, expertise, advice, and other similar products. Examples of service businesses are: Read More …