Benefits-Drawbacks

What Is Debt Financing ? Debt financing is just opposite of equity financing.(in which capital is raised by selling equity instruments to the investors). It is a process of raising fund by selling debt instruments such as bond, credit cards, debentures etc. It is a borrowing of money and should be paid back with ...

What Is Equity Financing ? Equity financing (also called equity funding) is a process of raising capital by selling equity instruments like ordinary shares, preference shares etc. Companies issue share to investors to raise money for business. It is effective tool that helps to meet short-term or long-term obligation...

 What Is Decentralization ?Decentralization is a type of organization set up in which authority and power is delegated to the middle and lower level management. It is just opposite of centralization where decision making authority is reserved in the top management. In this structure departmental heads, branch...

 What Is Centralization ? Centralization is a traditional type of organization set up in which power and authority such as decision making, planning, policy making, supervision, direction, resource allocation etc. are exercised by the higher level management. It is commonly practiced by small organizations having...

What Is Democratic Leadership Style ? A management system where subordinates are encouraged to take part in the decision making process is called democratic leadership style. Leaders allow the employees to give their views, ideas, suggestions and opinions while making decisions. This leadership brings specialization...

 What Is Autocratic Leadership Style ? Autocratic or authoritarian leadership is a management style where a single supervisor or manager exercises full authority and power in the organization. Supervisors or leaders have absolute power (directing, supervision, controlling, decision making etc.) to control...

 What Is Committee Organization ? An association of people which is formed to perform specific task or to make certain decision is called committee. It is very helpful to solve complex problems in the organization. It is a task force that brings highly qualified people together to achieve specific objective.Benefits...

 What Is Matrix Organizational Structure ? Matrix structure is practiced by large sized organizations to perform different projects. It is consist of dual authority (functional and project management), in which subordinates are responsible for both project and functional managers. It is highly specialized...

 What Is Functional Organization ? Functional organization is highly specialized structure in which organizational functions are divided into smaller group and different departments (such as production department, sales department, IT department, human resource department, finance department, research and...

What Is Line And Staff Organizational Structure ? Line and staff structure uses two layers of authorities in the organization (line authority and staff authority). Staff authority is responsible for policy making and planning, and line managers are responsible for the execution of daily organizational activities. ...