Describe the Five Common Ways of Departmentalization

question 26

Essay

Describe the five common ways of departmentalization. Give an example of each.

---

Definitions:

Promissory Notes

Written promises to pay a specified sum of money to a certain person or entity at a defined time or on demand.

Legal Claim

A demand for compensation, payment, or property by a person or entity asserting a right against another in a court of law.

Note Receivable

A financial asset representing a written promise to receive a specific amount of money, plus interest, at a future date.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.