To this committee, the board of directors delegates its authority in the actual conduct of the business. This plan of electing an executive committee is particularly desirable when the board is a large one, as it concentrates authority and results in more prompt action on matters demanding immediate attention. A large body is unwieldy, a quorum cannot always be brought together on short notice, but a working majority of a small committee can be convened promptly. The executive committee takes charge of both the commercial and manufacturing divisions. To still further concentrate authority, it is customary to appoint a _General Manager_ who has direct supervision over the immediate operation of both commercial and manufacturing divisions. He is appointed sometimes by the executive committee, but more often by the board of directors. The general manager, while occupying a position of chief acting executive, acts with the executive committee and is directly responsible to the board of directors. The commercial division of a business naturally subdivides into two sections: _Accounting_, and _Advertising and Sales_. The first thought of the student might be that accounting is given a position of too great importance, but in the sense here used it means the records of the business of every nature, the accounts, the gathering and recording of statistics and information of every character. The manufacturing division divides into _Purchasing and Stores_, and _Production_. In a measure, the purchasing of goods is a function of the commercial division, but the purchasing of raw material and supplies is properly under the supervision of the manufacturing division. CHARTING THE ORGANIZATION =6.= What may be termed the anatomy of an industrial body, is most graphically shown by means of charts. Free use of charts will be made throughout these papers. With properly designed charts the logical divisions of authority or expense can be clearly shown. Fig. 1 furnishes a graphic illustration of the principal components of the organization under discussion. In the first group we find the owners (stockholders) whose line of communication with the business is through the board of directors. Subordinate to the board of directors are its own executive officers, the executive committee, and general manager. The connecting lines show the executive committee to be in direct communication with the board of directors, while the general manager is in direct communication with both the executive committee and the board of directors. Under the general manager are the commercial and manufacturing divisions, over both of which he has direct supervision.