Many businesses have been in existence for years. Not all were started as new businesses. The combination and consolidation of two or more businesses result in a third business, the features of which may appear more complicated than apparently simple setup of a small business. Actually, the functions of a huge corporation are the same as those of a small one man business. The heads of both the large and small businesses must apply the same principles to conduct the business successfully. There is no difference in principles; the size of business doesn’t alter the fundamental principles of organization and management. This statement doesn’t mean that a man who can manage a small business successfully can always manage a large one with equal success. The personal element is always a factor.
In every business there are persons who do the selling. There are those who do the buying. Someone has to take in and pay out money, make loans, deals with banks. Usually, people who are concerned with the same activity or function are brought together in group or department. The sales department thus contains all the persons concerned with selling activities. The purchasing department contains all those concerned with purchasing activities. The treasurer’s department includes all who handle money. There is always a bookkeeping or accounting department to keep the records. There may be the other departments, as shown in the accompanying basic organization chart.