Saturday, January 16, 2010

What is the definition of control mechansims as it relates to business?

I also need a definition of bureaucratic, market, clan and financial control.What is the definition of control mechansims as it relates to business?
A control mechanism is any of many systems which restricts a business activity. For example, a checklist signed and left in a hotel room is a control system to ensure that each room is cleaned satisfactorily.





A financial control would be a policy to require certain individuals to authorize all purchase over $100, or to require the bank balance to be reconciled on a monthly basis.





A market is a place, either physical or not where goods and services are exchanged. For example an airport would be a market for car rentals as you have both buyers and sellers in one place to exchange cash for a rental car.





A clan is usually a group of related families that identify themselves as a common group. For example, the MacGregor clan in Scotland would all live in one area, share a common heritage and be at least loosely related to one another.





Bureaucratic is usually used to describe a process which has been overly complicated do to all of the requirements which the bureaucracy has created. A good example of this is all of the paperwork required to report a crime, file a tax return, or obtain a business license.

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