Here is your chance to be a tycoon. Create your own company. You will be the president and chief executive officer. It could be a manufacturer, retailer, or service industry firm, but not a hotel or bank.

Draw an organization chart for your company, similar to the one in Exhibit 12–1. Identify divisions and departments at all levels in the organization. Then prepare a companion chart similar to the one in Exhibit 12–2. This chart should designate the title of the manager of a subunit at each level in the organization.

It also should designate the type of responsibility center appropriate for each of these subunits.

Finally, write a letter to your company’s stockholders summarizing the major responsibilities of each of the managers you identified in your chart. For guidance, refer to the discussion of Exhibits 12–1 and 12–2 in the chapter. (Have some fun, and be creative.)