Business Test

4. "Division of labor" is basically the idea which ultimately increases the output of an enterprise by using the breakdown of labor (expressed through the mission statement) to allow the skills of individuals to run and maintain the transformation process. "Division of labor", in turn, is closing related with the term and the definition of strategy. The two are related to each other in that they affect each other. More simply put, strategy is what defines the "division(s) of labor." By using the mission statement to define the strategy, you allow yourself to now take that strategy and assign specific "divisions" and "labors" of the enterprise to certain individuals who will then assign the same to others, and on and on until the most efficient and effective plan(or strategy) is in place to produce a steady flow of output. These concepts are a basic knowledge of the idea of the enterprise, which I am now beginning to fully understand.

6. The exact number of levels which should be present in an enterprise is a number which can not be set in stone. The amount of levels which should be present in an enterprise should be decided upon by the entrepreneur and the manager(s), and eventually all employees of the enterprise. The number of levels depends on how far the mission statement, the strategy, and the divisions of labor, need to be broken down in order for each individual to possess a section of the overall enterprise in which they feel comfortable dealing with. When this occurs, the transformation process flows steady and constant. The amount of levels may change at any time with upgrade in the mission statement.