Question

Departmental stores have centralized Management. Justify the Following​

Answer 1

Explanation:

• (I) Departmental stores are generally established by joint stock companies.
• (II) Various departments which look like specialized shops are controlled and managed by single management.
• (III) The management of departmental store is centralized.
• (IV) All departmental store is centralized.
• (V) All departments are independent but they are centrally owned managed are controlled.
• (VI) Thus, departmental store has centralized management system.

Answer 2

Departmental stores have centralized management because these are very diversified stores.

Explanation:

• The centralized management of departmental stores or selling multiple products under one roof enables them to manage the inventory and sale of different products.
• If the management is not centralized, there will be a lot of chaos and multiplicity of actions.
• This would result in a wastage of efforts, money, and time.
• The centralized management of these stores also allows the managing team to keep a track of all the actions that have to be necessarily done in the course of time for the effective working of such stores.