Business is the practice of buying and selling goods and services to generate profit. It encompasses a wide range of activities, including marketing, finance, and operations.
Meaning of Produce (Commodity) Exchange Produce (or Commodity) Exchange refers to that organized market where the sale and purchase of agricultural produce, minerals, and industrial raw materials take place under predetermined rules and controls. The Chamber of Commerce, Merchant Chamber, etc. are the names by which Produce Exchanges are known in India. Definition According to […]
Meaning of Stock Exchange Stock Exchange refers to that organized market where the shares, debentures of joint stock companies, and other government securities are sold and purchased. The other names of the stock exchange are Share Market, Speculation Market; Stock Exchange Market, etc. The Stock Exchange is the barometer of a country’s prosperity. Definition According
Departmentalization (or Departmentation) Departmentalization refers to the formation of departments in a business organization, into small units or departments. For example – the division of an organization into production department, marketing department, finance department, etc. Departmentalization is done based on the nature of the business and at the time of departmentalization, each department is specified
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Meaning of Departmentalization (Departmentation) Departmentalization refers to the division of a business organization, into small units or departments. For example – the division of an organization into production department, marketing department, finance department, etc. Departmentalization is done based on the nature of the business and at the time of departmentalization, each department is specified clearly
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Committee Organization A Committee Organization is a type of democratic organization where all the decisions and work are carried out after mutual discussions and majority voting. Similarly, it has a Working Committee which is formed by the heads of different departments of the organization, who put forward the problems of each department in the meetings.
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Line and Staff Organization This method was developed to remove the defects of the Line Organization and Functional Organization. Under this system, the work is divided into independent divisions, and responsibility is also divided in a scalar form but a technical specialist is also appointed along with the departmental heads. These specialists only give advice
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Line Organization This form of organization has several names like Vertical Organization, Scalar Organization, Military Type Organization, or Departmental Organization. This is the oldest and most popular form of organization. It creates a chain of command, which allows the flow of authority downwards, from the top management to the subordinates. In other words, the highest
Meaning of Organization The term Organization means to put into working order or arrange in a system. It performs the task of arranging in order the various steps involved in the entire process of production. It is that device through which production is maximised at minimum cost. In other words, the task of establishing effective
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Vertical Combination When two or more units, performing different sequential activities in the same industry are combined, the combination is called Vertical Combination. In this kind of combination, the work of combined units is not competitive but complementary to each other, that is, the finished product of one unit is the raw material for the
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Horizontal Combination When two or more units engaged in the same kind of business join or combine under single management, the combination is called Horizontal Combination. The quality of such combined units is that they carry on the same trade before the combination. Such kind of combination is undertaken mostly when too much competition is
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