| Discussion Question: |
| Mr. Jamshed Khan is a sole owner of Gorey Bakers, a single member company (SMC) operating a chain of 30 stores of bakery products. Each store is run by a regular Store Incharge and adequate numbers of Assistants are hired on daily wages. To supervise the operations, Mr. Jamshed spends sometime of a week in each store.
Each store is working as an independent unit in its operation and production. Most of the purchases are made from local wholesalers on cash - generated through local sales. Each Store Incharge has a daily limit of purchase up to Rs.25,000 from local market without any formal permission. The payment of large purchase transactions (over Rs.25,000) must be paid by cheque signed by the respective Store Incharge and countersigned by Mr. Jamshed. The Store Incharge records and deposits the cash in the bank on availability of the company's vehicle provided for safety of the cash during the transit.
Required: Based on the information provided discuss the weaknesses in the area of purchase of Gorey Bakers and also give recommendations for improvement to Mr. Jamshed.
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