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Types of cheques
...Types of chequesThe cheques are of two types. (i) Open cheques and (ii) crossed cheques.(i) Open Cheques. Open cheques are those cheques which are paid across the counter of the bank. Open cheques may be bearer or order cheques.(a) Bearer cheques. If a drawer orders the bank to pay a stated sum of money to the bearer it is called a bearer cheque. Any person who lawfully possesses a beaker cheque i.... 
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Bill of exchange sample
...Bill of ExchangeA bill of exchange is playing an important part in the commercial life of the country. The need for it arises where the buyer Purchase goods needs a period of credit before paying it. It is drawn by the creditor and is accepted by the debtor.According to F.W. Muller, a bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giv.... Read
Quantity theory of money by irving fisher
...TRANSACT APPROACHIrving Fisher an American economist, put forward the Cash Transaction Approach to the quantity theory of money. He in his book The Purchasing Power of Money (1911) has stated that the value of money in a given period of time depends upon the quant t money in circulation in the economy It is the quantity of money which determines t general price level and the value of money Any cha.... Read
Factors affecting working capital
...The working capital requirements of a business depends upon a number of ‘factors which in brief are as under:-(1) Nature of the business. The working capital requirements of an enterprise basically depends upon the nature of its business and operating cycle of the business. A trading concern, for instance, requires large amount of working capital for investment in stocks, receivables and cash et.... Read
Different types of bank customers
...DIFFERENT TYPES OF BANK CUSTOMERSEvery commercial bank is anxious to increase its customers. However, every one cannot be accepted as its customer. Only those persons who are competent in law to enter into a contract can be considered as customers. The bank is and should be very cautious in the selection of customers as it is to have a continued relationship with them. The customers of a bank can .... Read
Remedies of inflation
...REMEDIES OF INFLATIONThe first panacea for a mismanagement nation is inflation of the currency. The second is war. Both bring a permanent ruin. They both are the refuge of political and economic opportunists. (Ernest Hemigway). To avoid political unrest and harmful, social and economic effects on the economy, it is the main objective of every government to take appropriate measures to control infl.... Read
The phases of business cycle
...What is business cycle?A business cycle ‘is a short term picture of the behavior of real output in a private enterprise economy Business cycle refers to upturn and downturn in the level of economic activity that extends over a period of time’. The business fluctuations occur in aggregate variable such as national income, employment and price level. The variables nearly move at the same time an.... Read
Alpha fibe fbcx
...Alpha-Fibe FBCx by Bio-Form EssentialsJoseph Artiss Ph.D, a research scientist at Wayne State University recognized the potential of FBCx (alpha-dextrin) while experimenting with it in his lab at the university. K-L Catherine Jen Ph.D., Dr. Artiss' co-inventor and nutrition professor proceeded to verify his incredible findings and... Alpha-Fibe FBCx - Nutrition for Natural, Healthy, and Effective.... Read
Promissory note
...Promissory NoteA Promissory note is the simplest and earliest kind of credit instrument. It is an unconditional written promise by one person to another in which the maker (payer) promises to pay on demand or at a fixed or determinable date in the future, a stated sum of money to or to the order of a specified person or to the bearer of the instrument. A promissory note in order to be negotiable m.... Read
Multiplier and accelerator theory
...MULTIPLIER AND ACCELERATOR THEORYThe Keynesians, have offered a demand side explanation of the business cycle. According to them, the fluctuations in output and employment in the country are caused by fluctuations in aggregate demand. The ups and downs in aggregate demand are caused by changes in the volume of investment. The volume of investment is directly related to the marginal efficiency of c.... Read
Mint par parity theory of exchange rate
...MINT PAR PARITY THEORY OF EXCHANGE RATEORDETERMINATION OF RATE OF EXCHANGE UNDER GOLD STANDARDWhat is mint parity theory?Mint parity theory explains the determination of exchange rate between the two countries which are on gold standard. In a country which is on gold standard, the currency is either made of gold or is convertible into gold at a fixed rate. There are also no restrictions on the exp.... Read
Balance of payments theory of exchange rate
...BALANCE OF PAYMENTS THEORY OF EXCHANGE RATE ORMODERN THEORY OF EXCHANGE RATEThe balance of payments theory of exchange rate is also named as ‘General equilibrium theory of exchange rate. According to this theory, the exchange rate of the currency of a country depends upon the demand for and supply of foreign exchange. If the demand foreign exchange is higher than its supply, the price of foreign.... Read
Legal aspects of business communication
...LEGAL ASPECTS OF BUSINESS COMMUNICATION
In all of business communication every possible care should be taken. Even a single carelessly chosen word may lead of a lawsuit. When we communicate with integrity and honest consideration for our reader, and with a golden we are legally safe. Golden rules refer to do to the others as you wish to be done by. You should remember that ignorance of the law .... Read
Cost push inflation
...Cost push inflation occurs when there is an increase in the cost of production of goods and is not associated with excess demand. The main causes of cost push inflation are:(1) Increase in money wage rates. The wage push inflation occurs when strong labor unions manage to press for wage increases in excess of labor productivity. Unit cost of production is thereby raised. The rise in costs of produ.... Read
Sources of company financing
...Financial requirements of a companySole proprietorship and partnership forms of business organizations are mostly run on small scale basis. They generally meet their fixed and working capital requirements from their owned capital. It is only the company form of organization which is run on large scale basis. It requires huge amount of funds to purchase fixed assets meeting day to day expenses of b.... Read
Difference between pledge and bailment
...COMPARISON BETWEEN BAILMENT AND PLEDGE
The following table gives the comparison between the bailment and the pledge:.... Read
Do banks create credit
...Credit Creation by Commercial Banks.Creation of credit does not mean that banks mint notes and coins. By creation of credit is meant that the commercial banks by taking in deposits and making loans expand the money supply.Do banks actually create credit? The answer is “yes”. Creation of credit does not mean minting of money. It is the expanding of money supply by banks by taking in deposits an.... Read
Difference between three negotiable instruments
...DIFFERENCE BETWEEN THREE NEGOTIABLE INSTRUMENTS Promissory note, Bill of exchange and Cheque..... Read
Borrowed capital
...Borrowed Capital is interest basedThe second source of funding to a business is the borrowed fund which is interest based. Borrowed fund consists of the amount raised by way of loans or credit. The borrowed fund is procured from the following sources.(1) Debentures. It is an instrument of credit acknowledging debt. It is issued by the company under its common seal Debenture carried a contract or p.... Read
Distribution and production of tea in the world
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Tea is one of the great drink crops of the world. Due to increasing population, area under tea cultivation and production is increasing rapidly. World tea production in 1970 was 1,276 thousand metric tons, which reached upto 3,871,339 (about 3.9 million tons) metric tons in 2007. In the world area under tea cultivation in 2007 was 2,856,226 (2.8 million hectares) hect4res and per hectare yield w.... Read
