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:
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Selling Agency Branch
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Autonomous Branch
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Goods for resale are supplied by the head office
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Goods for resale-branch outlets may make some local purchase
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Activities are strictly controlled by the head office.
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Branch outlets may have some local control over its activities
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Accounting records are maintained by the head office
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Branch maintains its own accounting record
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The branch managers are given very little autonomy to make decisions for the branch. Normally all instructions are from the head office.
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Branch managers are able to make considerable decision making on the management and business policies at the branches
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Next article is on Selling Agency Branch Accounting
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