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Objectives of business
...ding, black marketing, smuggling, overcharginq etc., to earn profit. A reasonable profit on a legitimate business is regarded a healthy sign and considered hi/al from Islamic point of view also.(iii) Provision of more employment. Business provides employment to the people. It thus helps in increasing the standard of living of the members of the society. (iv) Cooperation with the government The b.... 
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Fiscal policy
...Defination of Fiscal Policy:Fiscal policy is an additional method to determine public revenue and public expenditure. In the recent years importance of fiscal policy has increased due to economic fluctuations. Fiscal policy is an important instrument in the modern time. According to Arther Simithies fiscal policy is a policy under which government uses its expenditure and revenue programme to prod.... Read
Sole proprietorship and its characteristics
...Introduction The individual proprietorship or sore proprietorship is the oldest form of business organization. It is as old as the civilization itself. Historically, it appears that business started first with this form of organization. It is the simplest and natural type of organization. Sole proprietorship is also called individual proprietorship, or one man business. Sole proprietorship is a fo.... Read
Kinds of partners
...Types of Partners The partners of a firm are broadly divided into three main categories. (1) General Partners.(2) Special Partners. (3) Other Partners.(1) General PartnersBasically all the partners of a firm are general partners. General partners we those whose liability is unlimited in the f General partners are of two types (a) Active partner, and (b) Sleeping partner. (a) Active Partner A partn.... 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
Ignou bed admission 2011
...IGNOU has structured its B.Ed 2011 especially for students to make them experiences and strengthen the professional competencies of in-service teachers. To imbibe knowledge and develop an understanding of the various methods and approaches of organizing learning experiences of secondary school students. To develop skills required in selecting and organising learning experiences. To understand.... Read
Salient features or characteristics of partnership
...Definitions of Partnership. A partnership is an association of two at more persons to carry on as co owners of a business and to share its profits and losses. Section 4 of the Partnership Act defines partnership as “the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all.” ‘Persons who have entered into partnership w.... Read
Business organization nature and scope
...Meaning of Business OrganizationBusiness organization is composed of two words, business and organization. In order to understand the nature of business organization, it is necessary that the meaning of these two words is made clear to the readers.(1) BusinessBusiness is a human economic activity. It involves continuous and regular production and distribution of goods and services with a view to e.... 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
Mutual duties rights and liabilities of partners in the absence of partnership agreement
...ny loss caused to it by his willful neglect in the conduct of the business of the firm. 4. Due Diligence Every partner shall attend honestly and carefully to his duties in the conduct of business. 5. Provision of Information is the duty of the partners to give full information about the affairs of the firm to one another. (b) Rights of a Partner According to Section 12 and 13 of the Partnership Ac.... Read
Partnership agreement deed
...rship Deed The partnership deed usually contains the following clauses. 1. Name and location of business. 2. The nature of the business. 3. The amount of capital to be contributed by each partner. 4. Provisions or reinvestment in business. 5. The duties, powers and obligations of all the partners. 6. Length or life of business. 7. The method of distribution of profit and sharing of the losses. 8. .... 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
...e to invest their money in risky enterprises. The commercial banks generally provide short and medium term loans to entrepreneurs to invest in new enterprises and adopt new methods of production. The provision of timely credit increases the productive capacity of the economy.(3) Promotion of trade and industry. With the growth of commercial banking in the 19th and 20th centuries, there is vast exp.... Read
Reconstitution of partnership or admission and withdrawal of partners in a firm
...er’. An incoming partner is not liable for any act of the firm done before he became a partner.2. According to Section 31 of the Partnership Act, subject to contract between the partners and to the provision of Section 30, no person shall be introduced as a partner into a firm without the consent of all the existing partners.3. Subject to provision of Section 30, a person who is introduced as a .... 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
Sources of bank funds
...SOURCES OF BANK FUNDSA bank is a business firm. Its main aim is to earn profit. In order to achieve this objective it provides services to the customers. It offers a variety of interest bearing obligations to the public. These obligations are the sources of funds for the bank and are shown on the liability side of the balance sheet of a commercial bank. The main sources which supply funds to a ban.... 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
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
Problems before establishing a new business
...if the business is carried on a large scale, t brings economies in expenses However, determination of the scale of business is an important factor to be considered before establishing a business. (4) Provision of capitalCapital is the life blood of business. Before starting a business, the capital needs of the business is to be assessed. The capital needs depend upon its f and working capital requ.... Read
Remedies of inflation
..., should be avoided to control inflation.(3) Others Measures:Apart from fiscal and monetary measures, the other measures which are helpful in controlling inflation are: (a) Price support programme(b) Provision of subsidies(c) Arrangements of easy availability of goods on hire purchase to stimulate demand.(d) Imposing direct control on prices of essential items.(e) Rationing of essential consumer g.... Read
