After reading this article you will learn about the centralisation and decentralisation of authority. Centralisation of Authority: Centralisation of authority means systematic reservation of authority at central points in an organisation. Hence the majority of the decisions regarding the work are taken only at higher levels and not by those who actually performs the work. Advantages: Following are some of [...]
This article throws light upon the top six factors influencing choice of a particular form of organisation. The factors are: 1. Liability 2. Life of the Business 3. Raising of Funds 4. Transferability of Interests 5. Taxation Liability 6. Legal Formalities. Factor # 1. Liability: The liability of the owner/promoters is an important consideration in selecting the form of organisation. [...]
This article throws light upon the top two factors influencing the selection of a particular form of ownership. The factors are: 1. Financial Considerations 2. Non-Financial Considerations. Factor # 1. Financial Considerations: Financial considerations are mainly concerned with the raising of capital, taxation liability and cost of formation. These factors have been studied as such: (A) Ease in Raising Capital: [...]