Explain the four levels of activity in the pyramid representing the business organization and difference between horizontal and vertical flows of information.
Business:
Business can be defined as a work that includes exchange or production of goods and services against a consideration called as money. The basic assumption for running a business is going concern.
The four levels of activity in the pyramid representing the business organization are as follows:
Horizontal flow of information maintains operation level tasks. The information contains all the details regarding daily operations and flows across all the departments.
Vertical flow of information can go downward when top management specifies goal, strategy and goals to lower manager. Vertical flow of information can also go upward when operating staff delivers a summarized report to its senior manager. This report includes daily operation activities.