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The creation of horizontal (departments) and vertical levels (organizational hierarchy) brings about efficiencies through specialization and coordination,but at the same time produces:
Investment Error
Mistakes made in the process of investing capital, which can range from calculation errors to misunderstanding an investment's risks.
Capital Balance
The Capital Balance represents the amount of money that owners have invested in a business minus any withdrawals. It indicates the financial stake of the owners in the business.
Profits and Losses
Financial gains or deficits that a business experiences, typically shown in an income statement.
Invests
Invests pertains to the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.
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