What are Business Ethics? Meaning Definition Features

What are Business Ethics? Meaning
Ethics is a branch of social science. It deals with moral principles and social values. It helps us to classify, what is good and what is bad? It tells us to do good things and avoid doing bad things.Image Credits © Malc H.So, ethics separate, good and bad, right and wrong, fair and unfair, moral and immoral and proper and improper human action. In short, ethics

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Rules or Principles of Business Ethics, the Code of Conduct

Rules or Principles of Business Ethics
Rules or principles of business ethics are the code of conduct for businessmen. It tells us how businessmen should do business for social good. These principles are related to consumers, employees, investors, local community and the society as a whole.Image Credits © Hasloo.The important rules or principles of business ethics are as follows:-Avoid

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Need or Importance of Business Ethics

Need or Importance of Business Ethics
These twelve points below discuss the need, importance of business ethics.Image Credits © Sameer Akrani.Stop business malpractices : Some unscrupulous businessmen do business malpractices by indulging in unfair trade practices like black-marketing, artificial high pricing, adulteration, cheating in weights and measures, selling of duplicate and harmful

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Concept of Risk and Return in Investment Management

Concept of Risk and Return in Investment
Investment management is a game of money in which we have to balance the risk and return.Image Credits © Kees van Duyn.The risks associated with investment are:-Inflation risk : Due to inflation, the purchasing power of money gets reduced.
Interest rate risk : Due to an economic situation prevailing in the country, the interest rate may change.
Default

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Concept of Cost of Capital - Importance and Calculation

Concept of Cost of Capital
Capital refers to the funds invested in a business. The capital can come from different sources such as equity shares, preference shares, and debt. All capital has a cost. However, it varies from one sources of capital to another, from one company to another and from one period of time to another.Cost of capital may be defined as the company's cost of collecting funds.

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What is Corporate Finance? Meaning, What it Includes?

What is Corporate Finance? Meaning
Corporate finance means only the finance of joint-stock companies. It is a narrow term.Corporate finance is different from business finance. Business finance refers to the finance of all types of business, i.e. sole traders, partnership firms, joint-stock companies, etc. It is a broad term.
What Corporate Finance Includes?
Corporate finance includes planning,

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Characteristics or Features of Corporate Finance

Characteristics or Features of Corporate Finance
The points below discuss the characteristics or features of corporate finance.Image Credits © Sameer Akrani.Financial Activity : Corporate finance is a financial activity. It includes planning, raising, investing and monitoring the finance of the company. In short, it includes all the financial aspects of the company. This work is done by the

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Need and Importance of Corporate Finance

Need of Corporate Finance
Finance is the life blood of business. It is required by all types of companies. It is required for starting a company. It is required for running a company. It is required for the survival, stability and growth of a company. It is required for expansion and diversification of a business. Finance is also required for closing down the company.So, a company cannot survive

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What is Financial Management? Meaning Definition Scope Articles

What is Financial Management? Meaning
The financial management means:To collect finance for the company at a low cost and
To use this collected finance for earning maximum profits.Thus, financial management means to plan and control the finance of the company. It is done to achieve the objectives of the company.Image credits © Shyam.
Definition of Financial Management
According to Dr. S. N.

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Executive and Routine Functions of Financial Management

Functions of Financial Management
Functions of financial management can be broadly divided into two groups.Executive functions of financial management, and
Routine functions of financial management.This division of functions of financial management is depicted below.Image Credits © Sameer Akrani.
Executive Functions of Financial Management
The executive functions of financial management are

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Objectives of Financial Management

Objectives of Financial Management
The objectives of financial management are depicted and discussed below.Image Credits © Sameer Akrani.The main objectives of financial management are:-Profit maximization : The main objective of financial management is profit maximization. The finance manager tries to earn maximum profits for the company in the short-term and the long-term. He cannot guarantee

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Productivity Improvement Techniques Methods Measures

Productivity Improvement Techniques
Measures, methods or techniques to improve productivity are listed below.Image Credits © Sameer Akrani.These twelve productivity improvement techniques are explained as follows:Value Engineering (VE) : Value Engineering (VE) is the process of improving the value of a product at every stage of the product life cycle. At the development stage, VE improves the

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Operations Research - Definition Meaning Features Limitations

Operations Research - Definition
According to Philip McCord Morse and George E. Kimball,"Operations research is a scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control."According to Russell L. Ackoff and C. West Churchman,"Operations research is the application of scientific methods to arrive at the optimal

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Advantages of Operations Research OR in Decision Making

Advantages of Operations Research (OR)
The role, importance or advantages of Operations Research (OR) are:-Picture or Image depicting the Advantages of Operations Research (OR).
1. Effective Decisions
Operations Research (OR) helps the managers to take better and quicker decisions. It increases the number of alternatives. It helps the managers to evaluate the risk and results of all the

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What is MBO? Meaning, Definition and Articles

What is MBO? Meaning
Management By Objectives (MBO) was introduced by Peter Drucker in 1954. In MBO, the subordinate (junior or lower level) managers are allowed to participate in planning and controlling activities. They are allowed to participate in the decision-making process. In MBO, the superior and subordinate managers jointly fix the objectives of the organisation. They collectively make

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Four Stages or Steps in the MBO Process

Four Stages or Steps in the MBO Process
Generally, there are four stages or steps in the MBO process.
Stage 1. Collectively fixing objectives
The superior and subordinate managers collectively fix the objectives. The objectives are fixed for the Key Result Areas (KRAs). KRAs are those areas which are very important for the long-term success of the organisation. For e.g. R & D, Production,

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Benefits or Advantages of MBO Process

Benefits or Advantages of MBO Process
The benefits or advantages of MBO process are depicted in the picture below.
1. Better utilisation of resources
In MBO, there is optimum utilisation of physical, financial and human resources for achieving the objectives.
2. Development of personnel
MBO helps to train and develop the subordinate managers. It improves their skills in planning, decision

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How to Make Premising Effective?

How to Make Premising Effective?
The premising can be made effective by adapting following suggestions:-
1. Selection of premises
In order to make premising effective, it is important to select the premises correctly. Selection of premises depends on the environmental factors.
2. Collection of information
There are many methods of collecting information. There are simple oral methods and even

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Meaning and Types of Planning Premises in Management

Meaning of Planning Premises
Planning premises are the basic assumptions about the environment.Image Credits © Connectirmeli.These assumptions are essential to make plans more realistic and operational. Planning premises provide a framework. All plans are made within this framework. There are many environmental factors, which influence the plan. Assumptions are made about these factors. These

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What is Job Design? Meaning, Importance, Factors Affecting

What is Job Design? Meaning
Job design means to decide the contents of a job. It fixes the duties and responsibilities of the job, the methods of doing the job and the relationships between the job holder (manager) and his superiors, subordinates and colleagues.Image Credits © sitara.Job design also gives information about the qualifications required for doing the job and the reward (financial

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Evaluation of Alternatives in Decision Making - Techniques

Evaluation of Alternatives in Decision Making
After making all the alternatives, the next step in planning or in decision making is to evaluate these alternatives. Evaluation is required in order to select the best alternative for implementation. Image Credits © Delios.While evaluating alternatives, the managers must compare the alternative plans or decisions. For this, the manager must consider

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Managerial Functions in MNC Multinational Corporation

Managerial Functions in MNC
The managerial functions in MNC, i.e. of a Multinational Corporation are:-
1. Planning in the MNC
Planning involves analyses of international and external environment to find out the strengths, weaknesses, opportunities and threats. After conducting the SWOT analysis, the management sets the objectives. It is very difficult to analyse the external environment. This

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Importance of International Business for Economy

Importance of International Business
The economic importance of international business is discussed below.Image credits © Sameer Akrani.The points below highlight the importance of international business:-Earn foreign exchange : International business exports its goods and services all over the world. This helps to earn valuable foreign exchange. This foreign exchange is used to pay for imports.

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What is International Business? Meaning, Features and Article

What is International Business? Meaning
International Business conducts business transactions all over the world. These transactions include the transfer of goods, services, technology, managerial knowledge, and capital to other countries. International business involves exports and imports.International Business is also known, called or referred as a Global Business or an International

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