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Functions of money
...1. Money as a Medium of Exchange:The function of money as a medium of exchange solves all the difficulties of barter system. There is no necessity for a double coincidence of wants in the money economy. The man with cow who wants to purchase cloth need not seek a cloth seller who wants a cow. He can sell his cow in the market for money and then purchase cloth with the money obtained. 2. Money as M.... 
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Objectives of business
...Objectives of Business means the purpose for which the business is established. It is generally believed that the main objective of business is ta make profit and avoid loss. We do admit that profit is a driving force in undertaking any business activity but it is not the sole objective of any business. In the words of Urwick “earning of profit cannot be objective of a business any more than eat.... Read
Barter system
...Barter System is that system in which goods are exchanged for goods. In ancient times when money was not invented trade as a whole was on barter system. This was possible only in a simple economy but after the development of economy, direct exchange of goods without the use of money, was not without defects. There were various defects in this system. These were the following; 1. Double Coincidence.... Read
Memorandum of association
...The first thing in the formation of a Joint Stock Company is the preparation of the Memorandum Of Association. It is a document which sets out the constitution of the company and as such, is really the foundation on which the structure of the company rests. That is why Memorandum Of Association has often been called the charter of the company in its relation to this outside world. The promoters of.... Read
Monetary standards
...The way the currency of a country is issued, managed and regulated called the monetary system of the country. Monetary standards may be of different kinds. 1. Monometallism:If one metal is the ultimate measure of value in the country standard will be metallic. If one metal is the standard that monometallism. If that metal is gold it will be called gold standard similarly if that is silver it will .... Read
Merits and demerits of partnership form of organization
...What is partnership?Partnership is an association of two or more individuals (but not more than 20) who agree to share the profits of a lawful business which is managed and carried on either by all or by any, or some of them acting for all. According to Haney, “Partnership is the relation between persons competing to make contract who agree to carry on a lawful business In common with a view of .... Read
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
One man control is best in the world
...What is Meant By One Man Control? One man control or one man business (also called sole proprietorship) is the simplest form of business organization. The description ‘One man business’ or ‘one man control’ is sometimes con as misleading one, as there may be more than one persons working as employees in the business. The essential condition of one man control or one man business is that it.... Read
Role of commercial banks in the economic development of a country
...Commercial banks play an important and active role in the economic development of a country. If the banking system in a country is effective’, efficient and disciplined, it brings about a rapid growth in the various sectors of the economy. The economic significance of commercial banks is given in brief.(1) Banks promote capital formation. The commercial banks play an important role in rising of .... Read
Merchant banks
...Merchant Banks term is very widely used in Europe and refers to their origin as mercantile houses specializing in the export of British products, particularly cotton cloth, and the import of any products of the countries where they were established. This involved remitting money from one country to another, and the bill of exchange on London becomes the means of financing the import and export tra.... Read
Importance of money market
...IMPORTANCE OF MONEY MARKETIf the money market is well developed and broad based in a country, it greatly helps in the economic development of a country. The central bank can use its monetary policy effectively and can bring desired changes in the economy for the industrial and commercial progress in the country. The importance of money market is given, in brief, as under:(i) Financing Industry: A .... Read
Motorola defy vs motorola cliq 2 which one to buy
...Motorola Phones are in great demand these days as they are innovative and are built with the younger generation in mind. When it comes to Motorola brand it conjures a brand that brings the phone goes with our busy social life and life style. Both Motorola Defy and Motorola Cliq2 is Android Smartphones having unique Motoblur user interface. Defy runs on Android 2.1 whereas Motorola Cliq2 runs on An.... Read
Alibaba china ali baba group
...Alibaba (SEHK: 1688) a Hangzhou-based e-commerce/e-auction company, specializing in global trading. It was founded in 1999 by Ma Yun (Jack Ma), and operates five e-commerce sub-companies which operate different aspects of trading.In 2008, Alibaba.com attracted at least 23 million visitors[1] of which 65 percent were from China.Business The English-language web site alibaba.com specializes in busin.... Read
Letter of credit
...Letter Of Credit (L/C) It is a letter of open request by a bank or other financial institution to a prospective borrower, for an agreed amount and for a definite or indefinite period. It enables the borrower to draw a bill of exchange on the bank which is automatically accepted. Letter of credit is an open letter of request by a bank requesting a person to. lend a certain sum of money to the perso.... Read
Stock exchange
...A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as, other financial instruments and capital events including the payment of income and dividends. The securities traded on a.... Read
Cash balance approach to the quantity
...THEORY OF MONEYThe cash balance approach to the quantity theory of money was developed by a group of Cambridge economists in England which included Alfred, Marshall, AC. Pigou, Robertson and J. M. Keynes’ The approach of Cambridge economists to the quantity theory of n differs significantly from the Fisher’s approach. Fisher’s approach was based on the medium of exchange function of money. T.... 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
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Functions of state bank of pakistan
...The functions of State Bank of Pakistan are governed by the State Bank of Pakistan Act, 1956. In order to discharge its duties efficiently and successfully some of the functions which involved public dealing have been transferred to State Bank of Pakistan Banking Services Corporation from Jan., 2, 2002. The State Bank of Pakistan will continue performing its four basic functions (i) Framing and op.... Read
