Managerial Requirement

Organisational and administrative requirement depend upon the size and nature of businesses. Small businesses using simple processes of production and distribution can be managed effectively as proprietorships and partnerships. On the other hand, Giant enterprises involving the use of complex techniques and procedures require professional management. Such enterprises can be managed efficiently only as joint stock companies. Due to identity of ownership and management, motivation is very high in proprietorship and partnership. Such motivation is lacking in a company due to separation of ownership from management.

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