In most businesses it is likely that a different employees will be involved in different types of business transaction.
For example, in a department store, the sales will be made by the shop floor or retail assistants. The purchases of goods for resale will be made by the departmental buyers. The general expenses will be paid by the accounts department, the wages by the payroll department and any purchases of equipment will probably be made by the store manager.
In a large business the number of people involved in entering into, recording and authorising transactions may be considerable, so it is important to have a system of control over the amount they spend or authorise to prevent the business getting into financial difficulties. Senior management authorise the larger items of expenditure because they have greater knowledge of business policies and objectives and understand the financial circumstances of the business.