Type Of Branches And Their Characteristic Or Features

Where a company organizes its sales by establishing a branch or branches in the country, its head office either run it as a selling agency branch and or autonomous branch. The characteristics or features of these two type of branches are tabulated as follows:

Selling Agency Branch

Autonomous Branch

Goods for resale are supplied by the head office

Goods for resale-branch outlets may make some local purchase

Activities are strictly controlled by the head office.

Branch outlets may have some local control over its activities

Accounting records are maintained by the head office

Branch maintains its own accounting record

The branch managers are given very little autonomy to make decisions for the branch. Normally all instructions are from the head office.

Branch managers are able to make considerable decision making on the management and business policies at the branches

Next article is on Selling Agency Branch Accounting

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