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differance between business area and segment

Answer Posted / sne

It is misconception in India considering business area that, "It is another area or branch" Here is excerpt from some authentic source to give clarity about business area.

"2) business area and PCA

Business area will have many profit centers. For example Vehicle is a business area in a company. Vehicle can be cars and Bikes etc. Here Vehicle is business area and Cars and Bike are profit centers. In broad Vehicle is a profit center. But as it has sub areas those are profit centers. So profit centers cannot be replaced with business area and vice versa. We can replace business area by Profit centre, only condition is that it should be in same controlling area. The business area is more like a business unit of a company. You can have multiple profit centers within a business area."

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