Business Studies, asked by ahsanbilalazam, 18 hours ago

what is dilution of power in a company?
at least 3 lines answer​

Answers

Answered by Nairabarman9
1

Answer:

Dilution occurs when a company issues new shares that result in a decrease in existing stockholders' ownership percentage of that company.

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Answered by priyarksynergy
0

The dilution of power in a company can be explained by a simple process when the process of decentralization takes place.

Explanation:

  1. When a company is born, most of the power is generally given to the members of the top-level management.
  2. The power is centralized and the other workers of the firm are not allowed to make any decisions.
  3. However, as a company grows in operations and business, it has to shift some power to the lower-level managers which is known as decentralization of authority.
  4. Decentralization of authority is a very important task to ensure that the activities of a business are done in an efficient manner.
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