Why Balance of Payments of a Country Always Balances ?

Balance of Payments (BOP) - Introduction ↓
Since the balance of payment is based upon system of double-entry book-keeping, the total debits must equal to total credits. This is because two aspects of each transaction recorded are equal in amount but appear on opposite sides of the balance of payments account. In this accounting sense, balances of payments for a country must always balance.

The

Read More

Concept Definition and Structure of Balance of Payment (BOP)

Balance of Payment (BOP) - Concept & Definition ↓
Most of exports and imports involve finance i.e. receipts and payments in money. An account of all receipts and payments is termed as Balance of Payments (BOP).
Image Credits © Iman.
According to Kindle berger, "The balance of payments of a country is a systematic record of all economic transactions between the residents of the reporting country

Read More

4 Factors of Production - Land Labour Capital and Enterprise

What is Production Function ?
Factors of production means inputs and finished goods means output. Input decides the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called as "Production Function".All factors of production like land, labour, capital and entrepreneur are required

Read More

Land is a Natural Factor of Production - Features of Land

Land is a Natural & Primary Factor of Production ↓
Land is not created by mankind but it is a gift of nature. So, it is called as natural factor of production. It is also called as original or primary factor of production. Normally, land means surface of earth. But in economics, land has a wider meaning. Take a good look at the following picture :-
Image Credits © Amanda Platt.
From the above

Read More

What is Labour and Labourer ? Meaning and Features of Labour

What is Labour and Labourer ? Meaning ↓
Usually, the term 'Labour' is used for 'worker'. But, technically, it is not correct. Labour and Labourer (worker) are two different things.
Labour is an ability to work. Labour is a broad concept because it includes both physical and mental labour (as per above picture). Labour is a primary or human factor of production. It indicates human

Read More

What is Capital? Meaning, Features and Types of Capital

What is Capital? Meaning
Different subjects like Book-keeping, organization of commerce (O.C) and secretarial practice (S.P) in commerce, economics, etc., indicate different meaning of the term Capital.In book-keeping, capital means amount invested by businessman in the business.In commerce subjects like O.C and S.P, capital means finance or company's capital.But, in economics, capital is that

Read More

What is Entrepreneur ? Meaning Qualities Skills of Entrepreneur

What is Entrepreneur? Meaning
The term 'Entrepreneur' has been derived from a French word 'Entreprendre' meaning to undertake certain activities. Normally, entrepreneur has to perform two types of functions which are explained here with the help of pictures given below.

Factors of production viz. land, labour and capital are scattered at different places. All these factors have to be assembled

Read More

Entrepreneurship - What are the Features of Entrepreneurship?

Features of Entrepreneurship
The entrepreneur as an organizer of the process of production is the fore-runner of economic development of a country.
Image Credits © Ken Lennox.
1. Scare human resource
Entrepreneurship is a very scarce human factor as it involves specific talent, organizational capacity, innovative sprit and boldness to bear risk which is not found in every person. In developing

Read More

Functions of an Entrepreneur In Process of Production

Entrepreneur is a central point to process of production and all other factors like capital, land, labour cluster around him. He performs following functions.
Image Credits © Netfalls.
1. Entrepreneur initiates the business activity
He has to start the business activity by preparing a proper plan. The plan should deal with the type of goods or service to be produced, sources of raw material and

Read More

Microeconomics - Meaning Scope Features Uses Limitations

Study of Economics - Micro & Macro Economics

The study of economics is divided by the modern economists into two parts viz. Micro economics and Macro economics. This division is shown in the figure / chart above. Micro economics and Macro economics, both the terms were used in 1933 by Prof. Ragnar Frisch from Oslo University of Norway.The word micro has been derived from the Greek word `Mikros'

Read More

What is Market? Meaning Types or Classification of Market - Chart

What is Market? Meaning
Usually, Market means a place where buyer and seller meets together in order to carry on transactions of goods and services.But in Economics, it may be a place, perhaps may not be. In Economics, market can exist even without direct contact of buyer and seller. This fact can be explained with the help of the following statement.Image credits © Uncle Buddha."Market refers

Read More

Equilibrium Price Determination Under Perfect Competition

Price Determination Under Perfect Competition ↓
In prefect competition, price is determined by the market forces of demand and supply. All buyers and sellers are price takers and not price makers. Buyer represents demand side in the market. Every rational buyer aims at maximising his satisfaction by purchasing more at lower price and lower at higher price. This is called demand behaviour of

Read More

Monopoly Market Structure - Meaning , Features and Types

What is Monopoly ? Meaning and Concept
The term monopoly is derived from Greek words 'mono' which means single and 'poly' which means seller. So, monopoly is a market structure, where there only a single seller producing a product having no close substitute.
This single seller may be in the form of an individual owner or a single partnership or a Joint Stock Company. Such a single firm in market

Read More

Monopolistic Competition - Meaning , Features In Economics

What is Monopolistic Competition ? Its Meaning ↓
Pure monopoly and perfect competition are two extreme cases of market structure. In reality, there are markets having large number of producers competing with each other in order to sell their product in the market. Thus, there is monopoly on one hand and perfect competition on other hand. Such a mixture of monopoly and perfect competition is

Read More

Perfect Competition - Meaning, and Main Features In Economics

What is Perfect Competition ? Meaning ↓
Perfect Competition is a market structure where there is a perfect degree of competition and single price prevails.
The concept of Perfect Competition was introduced by Dr. Alfred Marshall.
Image Credits © Welker's Wikinomics.
Nothing is 100% perfect in this world. So, this states that perfect competition is only a theoretical possibility and it does not

Read More

What are the Main Advantages of Report Writing ?

1. Report gives consolidated & updated information
A report provides consolidated, factual and an up-to-date information about a particular matter or subject. Information in the report is well organized and can be used for future planning and decision making.
Image Credits © tilaneseven
2. Report as a means of internal communication
A report acts as an effective means of communication within

Read More

What is Report ? Meaning , Features or Characteristics

What is Report ? Understand Meaning of Report ↓
Report is a self-explanatory statement of facts relating to a specific subject and serves the purpose of providing information for decision making and follow up actions. It is a systematic presentations of ascertained facts about a specific event / subject. Report is a summary of findings and recommendations about a particular matter / problem.

Read More

Good Report Writing - Features , How To Write A Good Report ?

1. Good Report has a Clarity of Thought
A good report is one which is drafted in a simple, clear and lucid language. Its language should not be difficult and confusing. There should be no ambiguity as regards the statements made in the report. A reader should be able to understand the entire report easily, exactly and quickly. In fact, this is the basic purpose of report writing.
Image Credits ©

Read More

Various Stock Exchanges In India - BSE, NSE and OTCEI

1. Bombay Stock Exchange BSE
BSE is the leading and the oldest stock exchange in India as well as in Asia. It was established in 1887 with the formation of "The Native Share and Stock Brokers' Association". BSE is a very active stock exchange with highest number of listed securities in India. Nearly 70% to 80% of all transactions in the India are done alone in BSE. Companies traded on BSE were

Read More

Stock Exchange Transactions - Terms Terminology Glossary

List of Terms relating to Indian Stock Exchange ↓
List of the important terms relating to indian stock exchange transactions.
1. Group A Shares
These are the listed equity shares of large and well established companies having broad investor base. These shares are actively traded and for these shares the facility for carrying forward a transaction from one accounting period to another is

Read More

Powers of SEBI - Securities and Exchange Board of India

Powers of SEBI
The important powers of SEBI (Securities and Exchange Board of India) are:-Figure 1. Image or picture of SEBI's official logo.
1. Powers relating to stock exchanges & intermediaries
SEBI has wide powers regarding the stock exchanges and intermediaries dealing in securities. It can ask information from the stock exchanges and intermediaries regarding their business transactions

Read More

Role Functions of SEBI in Monitoring the Stock Exchange

What is SEBI?
Securities and Exchange Board of India (SEBI) is an apex body for overall development and regulation of the securities market. It was set up on April 12, 1988. To start with, SEBI was set up as a non-statutory body. Later on it became a statutory body under the Securities Exchange Board of India Act, 1992. The Act entrusted SEBI with comprehensive powers over practically all the

Read More

Services of Stock Exchange to Investors and Companies

Services given by Stock Exchange to Investors ↓
Image Credits © A7design1Provides liquidity to investement : Stock exchange provides liquidity (i.e easy convertibility to cash) to investment in securities. An investor can sell his securities at any time because of the ready market provided by the stock exchange. Stock exchange provides easy marketability to corporate securities.
Provides

Read More