What is a Service? Kotler and bloom (1984) defined service as: “Any activity on benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything” Therefore, a service can be: An act or performance offered by one partyRead More →
What is Strategy? Strategy comes from a Greek word “strategos” which means generalship i.e. art of the general. A strategy could be- A plan or course of action or a set of decisions making a pattern or creating a common thread. A pattern or a common thread derived from theRead More →
It is essential to estimate the working capital requirements of a project to ensure smooth project implementation. In India Working capital finance for projects is provided according to the lending norms of the tandon committee. The working capital requirements of a project consists of – Raw materials and ComponentsRead More →
The Cost of Capital is the minimum rate of return, that a company requires from its investments in order to ensure that the market value of its shares either increase or remain at the same level. It simply refers to the minimum profit a firm requires from its investment inRead More →
Capital refers to the total investment of a business in terms of money and assets. Capital requirements for a business can be determined on the basis of size and nature of the business concern. It is the integral and major part of all business activities and may be acquired fromRead More →
Project management refers to the application of man, machinery, money and knowledge to achieve objectives of a project. A Project may be defined as “a system involving coordination of different departments throughout the organization which must be completed within prescribed schedule and budget constraints.” A Project is essentially an organizedRead More →
A firm must decide whether to distribute all profits, retain them, or distribute a portion and retain the balance. Dividend decision is essentially a trade-off between retained earnings and issue of new shares. Dividend decision model helps a firm to make a profitable choice between the two. Dividend decisionRead More →
According to the Institute of Chartered Accountant of India, dividend is defined as “a distribution to shareholders out of profits or reserves available for this purpose”. Dividend refers to that portion of profits after tax which is distributed among the owners/shareholders of the firm. It is the return thatRead More →
MS Word Microsoft Word is a widely used commercial word processor designed by Microsoft. It is a paid software that helps in preparing, editing, storing and printing documents quickly and with accuracy. MS Word is a part of the Microsoft Office suite, a productivity software and can also be purchasedRead More →
The two main Goals/Objectives of Financial Management are – Profit Maximization [Traditional] Shareholders wealth Maximization [Modern] Profit Maximization It is a traditional and narrow approach which aims at maximization of returns by the firm in terms of monetary resources and increasing the earning per share of the shareholders. Under suchRead More →
The various decisions under financial management can be categorized under the following four heads – Investment Decision Finance Decision Dividend Decision Liquidity Decision Various Decisions under Financial Management are – (1) Investment Decision: The investment decisions are concerned with identification of investment opportunities and efficient allocation and utilization ofRead More →
Go to Part 1 Goals/Objectives of Financial Management – Profit Maximization [Traditional] Shareholders wealth Maximization [Modern] Profit Maximization – It is a traditional and narrow approach which aims at maximization of returns by the firm in terms of monetary resources and increasing the earning per share of the shareholders. UnderRead More →