Organizations and Jobs

Decisions of organization pertain to assignment of tasks to employees. The owner of a one-person operation need only allocate his/her own time effectively; as size grows, so does complexity of organization. Responsibilities are divided among individuals according to their abilities. For example, the owner of a market might hire a sales manager who would oversee several clerks working the cash register. A separate individual could be in charge of purchasing and in that capacity would control inventory, possibly with the aid of one or two stock clerks. This is known as functional departmentation (Baumback, 1985, pp. 331-334). It is typically used in the smallest business. As the single market described above expands to a chain of five stores, it may be organized by territory or a combination of territory and function. A manufacturing concern might be organized by product.

Job descriptions and organization charts are helpful in clarifying the delineations among various positions. The job description will prevent miscommunications or unmet expectations by

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ation. A buyer wants to see the bookkeeping records of the business to ascertain sales data, expenses, cost of goods sold, profit, and history of the company. Also relevant is what the purchase includes--inventory, fixtures, vehicles, accounts receivable and any other equipment. Lease information is also important. Buyers are universally warned by experts in small business ownership: Do not buy a business without full disclosure, or if misrepresentation of any aspect of the business is suspected. Conversely, the buyer will be expected to provide the seller with the following: personal financial information showing ability to purchase; a resume of background, and a signed statement that the buyer will not share the information provided by the seller. The buyer must examine all the relevant information carefully and determine that the asking price is fair and, if not, what is a reasonable counteroffer. In general, the higher a percentage of cash paid for the business, the lower a price that may be obtained. With a down payment at 20 percent to 30 percent of the value of the firm, a buyer should expect to pay 100 percent of fair market value. If he or she can pay 50 percent or 60 percent of the sale price in cash, the buyer
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Some common words found in the essay are:
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Approximate Word count = 4198
Approximate Pages = 17 (250 words per page)

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