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Provide a description of the differences with respect to the administrative organization between the following businesses. Also indicate the causes of these differences. Wholesaler A

Provide a description of the differences with respect to the administrative organization between the following businesses. Also indicate the causes of these differences.

Wholesaler

A wholesaler sells many articles. These articles are purchased from many vendors. Payment of these vendors must be made within 30 days after receipt of the goods. If payment is made within 8 days then a discount of 2% is granted. If payment is made after 30 days then a intrest of 1% per month is charged. About 25% of the vendors provide a bonus on the basis of the annual sales to the wholesaler. This bonus increases progressively with the sales. Goods received are stored in a warehouse.

Vegetables and fruit auction

A vegetables and fruit auction processes 1000 to 2500 parcels per day (depending on the season), from about 5000 farmers and growers. The goods are supplied in uniform boxes, which are owned by the auction and for which a deposit must be made by the vendors. The farmers and growers receive 90% of the auction revenues and the full deposit that they made for the boxes. Billing takes place one day after the auction. Payment must be made at the eight day after the auction.

Employment agency

An employment agency has about 1000 employees that are hired by its clients. These temporary employees (temps) are paid weekly. Payments for assignments that end before a week is completed are made one day after. Payments consist of the wages, taxes, social security premiums, and for about half of the temps, pension premiums to various pension funds. The taxes and social security premiums are paid at the end of each quarter of a year. The pension premiums are paid quarterly in advance on the basis of the estimated sum of wages. At the end of the quarter a postcalculation is made. Payment deficits are penalized with 15% of the deficit. Payment surpluses are paid back without intrest.

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