Factors Responsible for Changing Concept of Business

Factors Responsible for Changing Concept of Business
Image below depicts factors responsible for changing concept of business.Seven main factors responsible for changing concept of business:Growing expectations of consumers.
Advent of consumerism.
Increase in the market competition.
Information revolution.
Rise of professionalism in business.
Growing concern for safety of environment.
Rapid

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What is Advertising? Etymology Definition Meaning of Advertising

Etymology of Advertising
Etymology means a study of origin, evolution and history of words.‘Advertise’ is a verb form of English word ‘Advertising’. It has its origin in a classical Latin word ‘Advertere’.Image credits © Prof. Mudit Katyani.‘Advertere’ is made of ‘Ad’ + ‘Vertere’ where,Ad means “to or toward”, and
Vertere means “to turn”.
Thus, ‘Advertere’, a union of ‘Ad’ and ‘Vertere’, jointly

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Changing Concept of Business from Profit to Environment

Changing Concept of Business
Concept of business implies the intention of doing a business. In other words, it means the purpose for which a business is being carried on.Since last few decades, there has been an impressive change in the concept of business. It has changed remarkably from its mere producer orientation (i.e. only profit earning attitude) to the customer orientation (i.e. giving

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What are Advantages of Debit Card ? Benefits

Advantages of Debit Card
The following points discuss important benefits or advantages of debit card.ADVANTAGES OF DEBIT CARDPrepaid cardDebit card acts as a type of prepaid card. It is so, since it already has a sufficient amount of cash balance in its holder’s bank account. It permits to carry on the value of the transaction (i.e. purchases) to the extent of available balance in its holder’s

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What is Debit Card? Definition Meaning

What is Debit Card? Definition
Debit card can be defined either in a simple way or detailed manner depending on how it is perceived with respect to different senses of finance. Following statements are few selected ones that lucidly express the definition of debit card within their individual perspectives. These definitions of debit card will help to get its overall understanding.1. In a General

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Interdependence of Production and Marketing in Business

Interdependence of Production and Marketing
The most crucial and fundamental function of business is to:First produce/provide some goods and/or services, and then
Market and/or target the same to the potential buyers and/or consumers.
The basic functions of business namely, production and marketing go hand in hand with one another.Following points briefly explains the interdependence of

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Explain Benefits or Importance of Inventory Control

Explain Benefits or Importance of Inventory Control
Following image briefly explains benefits or importance of inventory control.The benefits or importance of inventory control is listed in following points:Inventory control protects a company from fluctuations in demand of its products.
It enables a company to provide better services to its customers.
It keeps a smooth flow of raw-materials and

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What is Inventory Control? Definition Meaning Achievement

What is Inventory Control? Definition
1. According to Gordon Carson,"Inventory control is the process where by the investment in materials and parts carried in stocks is regulated, within pre-determined limits set in accordance with the inventory policy established by the management."This definition of inventory control is taken from a book titled 'Production Handbook' published in 1958 and

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What is Inventory? Meaning Definition Examples

Meaning of Inventory
Let's find out, What is inventory?Inventory is the stock of goods held for doing business.
It is usually required to carry on the business and its allied activities.
Important points covering the meaning of inventory is depicted below.The meaning of inventory mainly revolves around following four items:Raw-materials required for production process.
Work in progress (WIP).

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Factors Influencing or Affecting Fixed Capital Requirement

Factors Influencing or Affecting Fixed Capital Requirement
Following diagram highlights the important factors influencing or affecting fixed capital requirement of a business. Click on image for a zoomed preview.The factors determining, affecting or influencing fixed capital requirements of a business are briefly given in the following nine points:Nature of business is the most crucial factor of

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Explain Role or Importance of Fixed Capital

Explain Role or Importance of Fixed Capital
Following diagram briefly explain the main role or importance of fixed capital.The main role or importance of fixed capital is listed in following eight points:Fixed capital is required to buy fixed assets for the company.
It is needed to meet various promotionl expenses of a company.
It aids a company to modernise by easing the process of purchasing

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Sources of Fixed Capital or Long Term Finance

Sources of Fixed Capital or Long Term Finance
The main sources of fixed capital or long term finance are depicted below.The sources of fixed capital or long term finance are:Issue of Equity and Preference shares.
Issue of Right shares.
Private placement of shares.
Issue of debentures.
Term loans.
Retained earnings.
Lease financing.
Now let's briefly discuss each source of fixed capital or long

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Disclaimer and Privacy Policy of Kalyan City Life Blog

Disclaimer of blog
We have taken enough care and necessary efforts to provide correct information on all concerned topics. However, we still don't make any guarantees regarding accuracy or completeness of such information.Our readers, especially students, are requested to make use of this website as a source of additional information and not as an alternative to their prescribed and/or

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Stages in Evolution of Business from Local to Global

Stages in Evolution of Business
Explain the evolution of business.Let's understand the broad meaning of evolution of business.“Evolution of business means its origin, growth, and continuous development with expansion in various sectors, that contribute and run economies.”The evolution of business went through many progressive stages or so called developmental steps. In each stage of progress, it

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Functions of Business - Internal, External and Support

Functions of Business
The most fundamental or primary functions of business are depicted below.The functions of business are mainly categorised into three groups viz;
Internal functions of business,
External functions of business, and
Support functions of business.
Internal functions of business help to lay its preliminary foundation.External functions facilitate promoting products produced by

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Explain the Features of Turnaround Strategy

Explain the Features of Turnaround Strategy
Following image briefly explains important features of turnaround strategy.Nine important characteristics or features of turnaround strategy are:Turnaround involves restructuring the sick company.
It is applicable to a loss-making unit.
It needs consultation of internal and external experts.
It is a long and time-consuming process.
It involves in-depth

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What is Turnaround Strategy? Meaning, Definition, Examples

Meaning of Turnaround Strategy
Following diagram depicts the core meaning of turnaround strategy.The concept or meaning of turnaround strategy covers following points:Turnaround strategy means to convert, change or transform a loss-making company into a profit-making company.
It means to make the company profitable again.
The main purpose of implementing a turnaround strategy is to turn the

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What are the Advantages of Mergers?

What are the Advantages of Mergers?
The nine major advantages of mergers are depicted below.The major benefits or advantages of mergers are as follows:Economies of scale.
Tax benefits.
Financial resources.
Entry in global markets.
Growth and expansion.
Helps to face competition.
Increase in market share.
Increases goodwill.
Research and development (R&D).
Miscellaneous advantages.
Now let's

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What are the Advantages of Amalgamation?

What are the Advantages of Amalgamation?
The ten principal advantages of amalgamation are depicted below.The main benefits or advantages of amalgamation are as follows:Operating economics.
Diversification.
Financial economics.
Growth.
Managerial effectiveness.
Helps to face competition.
Revival of sick units.
Tax advantages.
Increase in market share.
Increases goodwill.
Miscellaneous advantages.

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What is Priority Sector Lending ? Meaning Areas

Priority Sector Lending Meaning
Priority sector plays an important role in the economic development of the country. Therefore, the Central (Federal) Government of any country gives this sector priority (first preference) in obtaining loans from banks at a low rate of interest. This is known as a ‘Priority Sector Lending’.Following important points cover the core meaning of priority sector

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What are Types of Foreign Collaboration?

What are Types of Foreign Collaboration?
The four main types of foreign collaboration are depicted below.The classification or types of foreign collaboration include namely:Financial collaboration.
Technical collaboration.
Marketing collaboration.
Management consultancy collaboration.
Now let's proceed further to discuss each type of foreign collaboration.
1. Financial collaboration
In case of

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What are Features of Foreign Collaboration?

What are Features of Foreign Collaboration?
The nine important features of foreign collaboration are depicted below.The main characteristics or features of foreign collaboration are as follows:A type of partnership.
Requires an approval of the government.
Entities are from developed and developing country.
Benefits to developed country.
Benefits to developing country.
Establishes business

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What is Foreign Collaboration? Definition, Meaning, Examples

Definition of Foreign Collaboration
In general, the definition of foreign collaboration can be stated as follows.“Foreign collaboration is an alliance incorporated to carry on the agreed task collectively with the participation (role) of resident and non-resident entities.”Alliance is a union or association formed for mutual benefit of parties.Foreign collaboration is such an alliance of

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What are Features of Fixed Capital?

What are Features of Fixed Capital?
The ten important features of fixed capital are depicted in the following image.The main characteristics or features of fixed capital are listed as follows:Purchase of fixed assets.
Promotion and expansion of business.
Low liquidity.
Permanent in nature.
Primary sources.
Amount of fixed capital.
Long-term needs of business.
Source of wealth and risk.
Source of

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What is Fixed capital? Definition, Meaning and Examples

Definition of Fixed Capital
In general, the definition of fixed capital can be stated as under.“Fixed capital is a compulsory initial investment made by the entrepreneur to start up the activities of his business.”Fixed capital is a mandatory one-time investment made at the introductory phase of a business establishment.Fixed capital is not alike working capital, which is required on a

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How to Start a Business? Steps to Set Up a New Business

How to Start a Business?
Starting a business means setting up a new business enterprise. This initiation is also known as the promotion of business.Image credits © Ashley Renee.Promotion of business is done by a Promoter or an Entrepreneur.The Promoter has to take some steps to start a new business enterprise. Promotion of business is not an easy job. One mistake will cause many difficulties for

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What is Amalgamation? Definition, Meaning and Example

Definition of Amalgamation
In general, the definition of amalgamation can be stated as follows."Amalgamation is a union of two or more companies, made with an intention to form a new company."In terms of finance, the definition of amalgamation can be given as under."Amalgamation is an agreement (deal) between two or more companies to consolidate (strengthen) their business activities by

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What is Merger? Definition, Meaning and Example of Merger

Definition of Merger
The definition of merger in general and in finance can be stated as follows:In General,"Merger is an absorption of one or more companies by a single existing company."In Finance,"Merger is an act or process of purchasing equity shares (ownership shares) of one or more companies by a single existing company."Image credits © Arrow International.
Meaning of Merger
Before we

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How to Implement Total Quality Management TQM? 6 Cs of TQM

How to Implement Total Quality Management TQM?
The most important purpose for the implementation of a Total Quality Management TQM process is to get the assigned task completed at the right time and with quality improvement.The Six Cs for successful implementation of a Total Quality Management (TQM) process are depicted as follows:The Six Cs required for proper implementation of a TQM are given

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What are Functions of Development Banks?

Functions of Development Banks
The role or functions of development banks in India are depicted below.The nine important functions of development banks in India are as follows:To promote and develop small-scale industries (SSI) in India.
To finance the development of the housing sector in India.
To facilitate the development of large-scale industries (LSI) in India.
To help the development of

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Meaning and Definition of Development Banks in India

Meaning of Development Banks
Development banks are specialized financial institutions. They provide medium and long-term finance to the industrial and agricultural sector. They provide finance to both private and public sector. Development banks are multipurpose financial institutions. They do term lending, investment in securities and other activities. They even promote saving and investment

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Non-Banking Activities Services Offered by Banks

Non-Banking Activities
All banks perform non-banking activities along with their traditional functions.A bank cannot survive without performing the following non-banking activities:Banks help their customers to make utility payments with ease.
They perform merchant banking for their customers.
They provide factoring services to their clients.
They manage mutual funds and minimize investment

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Changing Role of Banks in India Since Economic Reforms of 1991

Changing Role of Banks in India
The role of banks in India has changed a lot since economic reforms of 1991. These changes came due to LPG, i.e. liberalization, privatization and globalization policy being followed by GOI. Since then most traditional and outdated concepts, practices, procedures and methods of banking have changed significantly. Today, banks in India have become more

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Banker-Customer Relationship Explained in Detail

Banker-Customer Relationship
The relationship between banker and customer is mainly that of a debtor and creditor. However, they also share other relationships.Some of the important relationships they share are depicted below.The banker-customer relationship is that of a:Debtor and Creditor,
Pledger and Pledgee,
Licensor and Licensee,
Bailor and Bailee,
Hypothecator and Hypothecatee,
Trustee and

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What are the Important Features of an Asset?

Important Features of an Asset
The important features of an asset are depicted in the following image.The six important features of an asset are briefly listed as follows:Asset has a price or value in the market.
It must generate some revenue.
It has maintenance or repair cost.
It undergoes depreciation over a period of time.
It has an estimated useful life span.
It also has a scrap value.
Now

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What are Challenges Before Indian Entrepreneurs?

Challenges Before Indian Entrepreneurs
The challenges which Indian entrepreneurs have to face are depicted below.The Indian entrepreneurs have to face following challenges:To understand, tackle and survive the era of globalization.
To take optimum advantage of business opportunities arose due to liberalization of Indian economy since 1991.
To replace outdated technology with improved modern

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What is Asset? Meaning, Definition, Examples of Assets

Meaning of Asset
Asset means a financial or an economic resource.Asset includes all those things (either tangible or intangible ones) which are capable of being owned or leased out (rented) to generate a value (price) or returns in present and in the future.Image credits © LancerE.
Definition of Asset
In general, the definition of an asset can be stated as follows,“An asset is a financial or

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Types of Continuous Production System - Mass and Process

Types of continuous production system
The types of a continuous production system are depicted below.The types of a continuous production system include:Mass production flows, and
Process production flows.
Discussed below are each type of continuous production system.
1. Mass production flows
Here, company produces different types of products on a large-scale and stock them in warehouses until

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Types of Intermittent Production System - Project Jobbing Batch

Types of intermittent production system
The types of an intermittent production system are depicted below.The types of an intermittent production system include:Project production flows,
Jobbing production flows, and
Batch production flows.
Now let's discuss each type of intermittent production system.
1. Project production flows
Here, in project production flows, company accepts a single,

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What is Cash? Meaning Definition Function of Cash

What is Cash? Meaning
Cash may be in any form of currency, like banknotes and coins, which have a legal acceptance and recognition in the market.The acceptance of cash by its user indicates that it has a trading value when tendered for purchase of goods and services.Image credits © Canadian Wendy 24.
Definition of Cash
The definition of the term cash can be stated as follows,"Cash is money in

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Types of Production System - Intermittent and Continuous

Types of production system
The types of production system are depicted in the following image.Image credits © Moon Rodriguez.The types of production system are grouped under two categories viz.,Intermittent production system, and
Continuous production system.
Now let's discuss in detail each of the above-mentioned categories.
Intermittent production system
Intermittent means something that

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Importance of Planning - Why Planning is Important?

Importance of Planning
The need and importance of planning is depicted in the following image.The main advantages or importance of planning is listed as follows:Planning increases the efficiency of an organization.
It reduces the risks involved in modern business activities.
It facilitates proper coordination within an organization.
It aids in organising all available resources.
It gives right

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Disadvantages of Flexible Manufacturing System FMS

Disadvantages of Flexible Manufacturing System FMS
The disadvantages of a flexible manufacturing system FMS is depicted below.Limitations or disadvantages of flexible manufacturing system are as follows:FMS is a complex system.
Requires highly skilled technicians.
Needs high level of planning.
Demands high initial investment.
Let's discuss each disadvantage of Flexible Manufacturing System (FMS)

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What are Advantages of Flexible Manufacturing System FMS?

What are Advantages of Flexible Manufacturing System FMS?
The advantages of a flexible manufacturing system FMS is depicted below.The benefits or advantages of flexible manufacturing system are listed below:Large variety of same products.
Profitable investment.
Requires limited inventory.
Low labour cost.
Flexible system.
Speedy production.
Let's quickly discuss each advantage of Flexible

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Flexible Manufacturing System FMS - Definition Meaning Suitable

Definition of Flexible Manufacturing System FMS
The definition of a flexible manufacturing system (FMS) is quoted below."Flexible Manufacturing System (FMS) is a computer-controlled process technology suitable for producing a moderate variety of products in moderate, flexible volumes."Image credits © Reinold Metaalbewerking.This definition will get clear after reading following points on meaning

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What are Advantages of Departmentalization?

What are Advantages of Departmentalization?
The advantages of departmentalization are depicted in the image below.The main benefits or advantages of departmentalization are listed as follows:Specialization.
Growth and expansion.
Fixing responsibility.
Better customer service.
Performance appraisal.
Management development.
Optimum utilization of resources
Facilitates better control.
Now let's

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What is Production System? Definition Meaning Examples

What is Production System? Definition Meaning
This article briefly explains the introductory concept of a production system.Image Credits © NathanThe meaning, definition and other basic points covered in this article on a production system are listed as follows:Meaning of production.
Meaning of system.
Definition of production system.
Meaning of production system.
Components.
Examples.

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What are Disadvantages of Mutual Funds? Limitations

Disadvantages of Mutual Funds
The seven prominent disadvantages of mutual funds are depicted below.The main limitations or disadvantages of mutual funds are as follows:Mutual funds are subject to market risk.
No guarantee of returns.
Diversification of portfolio doesn't maximize returns.
Selecting right financial securities is not easy.
Cost management not proportional to performance.
Unethical

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Advantages of Mutual Funds Investments - Benefits

Advantages of Mutual Funds
The ten main advantages of mutual funds are depicted below.Ten prominent benefits or advantages of mutual funds are as follows:Mutual funds are simple to invest in.
Professionally managed.
Offers diversification.
Conveniently administered.
Gives higher returns.
Low cost management.
Offers liquidity.
Provides transparency.
Highly regulated.
Allows switching to other

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Stages Process Steps of New Product Development

Stages Process Steps of New Product Development
The stages or process or steps involved in a new-product development are depicted in the image given below. Click on it to get a zoomed preview.Image credits © Moon Rodriguez.The eight stages or process or steps involved in the development of a new product are listed and also hyper-linked as follows:Idea generation.
Idea screening.
Concept testing.

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What is Product Development? Meaning Definition Example

What is Product Development? Meaning
First let’s understand the meaning of word viz., product and development.Product means any marketable thing with some utility in it, produced either by a labour or through series of automated processes.
Development is an act of making or achieving a continuous progress in something by someone. Progress transit from an earlier policy (traditional approach) to

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What is Mutual Fund Investment? Meaning Definition Working SIP

What is Mutual Fund Investment?
The concept of mutual fund investment is briefly discussed in this article.Image Credits © ANVRecifeThe contents covered or points explained in the following article of mutual fund investment are listed and linked appropriately as follows:Meaning of mutual.
Meaning of fund.
Systematic Investment Plan SIP.
Definition of mutual fund.
Meaning of mutual fund.
Diagram

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Bases Methods Types of Departmentalization

Bases Methods Types of Departmentalization
Bases or methods or types of departmentalization are depicted in this image.Diagram Credits © Moon Rodriguez.The bases or methods or types of departmentalization are listed as follows:Functional departmentalization.
Process departmentalization.
Product departmentalization.
Geographic departmentalization.
Customer departmentalization.
Combined

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Factors Affecting Determining Product Design

Factors Affecting Determining Product Design
The factors affecting or determining a product design are depicted below.Image Credits © Moon Rodriguez.The factors that determine or affect a product design are as follows:Requirements of targeted customers.
Availability and access to necessary production facilities.
Type and quality of raw-materials used to produce a product.
Cost to price ratio.

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Essential Requirements of a Good Product Design

Essential Requirements of a Good Product Design
Main or essential requirements of a good product design are depicted below.Image Credits © Moon Rodriguez.The essential requirements of a good product design are listed as follows:Product must optimally perform its main function (task).
It must be easy to repair at a low repair cost.
It must be very reliable to use.
It must follow principles of

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What is Product Design? Definition Meaning

What is Product Design? Definition
The definition of product design can be stated as follows."Product design is the translation of intellectual wisdom, requirements of the entrepreneurs, or needs of the consumers, etc. into a specific product."Product design is usually a creative accomplishment of adventurous and experienced professionals.
Meaning of Product Design
The meaning of product design

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What is Departmentalization? Definition Meaning

What is Departmentalization? Definition
According to Professors Pearce and Robinson,"Departmentalization is the grouping of jobs, processes, and resources into logical units to perform some organizational task."The concept of departmentalization is depicted in the following diagram.Image Credits © Moon Rodriguez.
Meaning of Departmentalization
In departmentalization, similar activities are

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Unity of Command Principle - Meaning Example Advantages

Unity of Command Principle - Meaning
Unity of Command is one of the Henri Fayol's 14 principles of Management. This principle states that there must be only one superior to a subordinate. That is, an employee or a worker must not have many bosses or superiors. If an employee or subordinate has to work under the influence of many bosses or superiors, then it creates a confusing situation, dilemma

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What is Production? Definition Meaning Transformation Process

What is Production? Definition
As per Carl Heyel (16 Feb 1908 - 16 May 2000),"Production is the process of transforming raw materials or purchased components into finished products for sale."Image Credits © Moon Rodriguez.
Meaning of Production
Production is a process of transforming (converting) inputs (raw-materials) into outputs (finished goods). So, production means the creation of goods

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Types of Risk - Systematic and Unsystematic Risk in Finance

Types of risk
First let's revise the simple meaning of two words, viz., types and risk.In general and in context of this finance article,Types mean different classes or various forms / kinds of something or someone.
Risk implies the extend to which any chosen action or an inaction that may lead to a loss or some unwanted outcome. The notion implies that a choice may have an influence on the

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Methods Techniques of Production Forecasting

Methods Techniques of Production Forecasting
Methods or techniques of production forecasting are depicted below.Image Credits © Moon Rodriguez.The models or techniques of production forecasting are listed as follows:Brainstorming technique.
Goal oriented forecast technique.
Graphic charting technique.
Matrix technique.
Nominal group technique (NGT).
Delphi technique.
Simple average technique.

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What are Features of Credit Card?

What are Features of Credit Card?
The eleven important features of credit card are depicted in the image below.The main characteristics or features of credit card are listed as follows:Alternative to cash.
Credit limit.
Aids payment in domestic and foreign currency.
Record keeping of all transactions.
Regular charges.
Grace period or grace days.
Higher fees on cash withdrawals.
Additional

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What is a Credit Card? Meaning Definition Size Anatomy Glossary

Before we proceed to understand comprehensively what is a credit card? First let’s clarify the simple meaning and/or glossary of some basic terms.16 important basic terms and/or points related to credit card are as follows:Credit means to borrow something from someone, for example, to borrow money from a bank.
Card is a small flat object made of a laminated plastic sheet and other materials.

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Golden Rules of Investment - Growth, Returns and Liquidity

Golden Rules of Investment
Before we proceed let’s revise the meaning of words viz., rules and investment in context of this article.
Rules are sets of certain principles or conditions that guide, direct, refine, control, and govern something or someone.
Investment is a continuous course of action(s), for exploring the various fiscal alternatives to maximize the wealth.
Golden rules of

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Steps in Production Forecasting Process

Steps in Production Forecasting Process
Steps in a production forecasting process are depicted in the image below.Image Credits © Moon Rodriguez.The stages or steps in a production forecasting process are listed as follows:Fix the forecasting objectives.
Decide what to forecast?
Determine the time frame.
Collect the data for forecasting.
Select the forecasting model
Build and test the

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What is Production Forecasting? Definition Meaning

What is Production Forecasting? Definition
The definition of production forecasting is quoted in following statement."Production forecasting is estimating the future demand for products and services and the resources necessary to produce the output.."Image Credits © Steve Pepple.Now let's discuss and understand the meaning of production forecasting.
Meaning of Production Forecasting
Production

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What is Production Planning? Meaning Definition Objectives

What is Production Planning? Meaning
Production planning means to fix the production goals and to estimate the resources which are required to achieve these goals. It prepares a detailed plan for achieving the production goals economically, efficiently and in time. It forecasts each step in the production process. It forecasts the problems, which may arise in the production process. It tries to

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