Merchant Banking

Definition: Merchant banking can be defined as a skill-oriented professional service provided by merchant banks to their clients, concerning their financial needs, for adequate consideration, in the form of fee. Merchant banks are a specialist in international trade and thus, excel in transacting with large enterprises. It offers a range of financial and consultancy services,…

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Organization

Definition: Organization refers to a collection of people, who are involved in pursuing defined objectives. It can be understood as a social system which comprises all formal human relationships. The organization encompasses division of work among employees and alignment of tasks towards the ultimate goal of the company. It can also be referred as the…

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Work Measurement

Definition: Work measurement can be defined as the implementation of a series of techniques which are designed to find out the work content, of a particular task or activity, by ascertaining the actual amount of time necessary for a qualified worker, to perform the task, at a predetermined performance level. The essence of work measurement…

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Vertical Integration

Definition: Vertical Integration, as the name suggests, is the combination of firms engaged in different levels of the distribution chain, in the same industry. It involves the augmentation of the firm by uniting the former and latter productive processes. In this form of merger, the company opts to engage in the businesses, which have some…

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Factoring

Definition: Factoring implies a financial arrangement between the factor and client, in which the firm (client) gets advances in return for receivables, from a financial institution (factor). It is a financing technique, in which there is an outright selling of trade debts by a firm to a third party, i.e. factor, at discounted prices. Factoring…

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Strike

Definition: In business terms, a strike can be understood as a curtailment of work, due to the collective refusal of workers to work, which occurs as a response to employee grievances. It involves, dropping out of work by any number of workers, employed in a particular industry, with an aim of creating pressure on the…

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Decision Tree

Definition: Decision Tree may be understood as the logical tree, is a range of conditions (premises) and actions (conclusions), which are depicted as nodes and the branches of the tree which link the premises with conclusions. It is a decision support tool, having a tree-like representation of decisions and the consequences thereof. It uses ‘AND’…

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Tax Planning

Definition: Tax Planning can be understood as the activity undertaken by the assessee to reduce the tax liability by making optimum use of all permissible allowances, deductions, concessions, exemptions, rebates, exclusions and so forth, available under the statute. Put simply, it is an arrangement of an assessee’s business or financial dealings, in such a way…

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Enterprise Resource Planning (ERP)

Definition: Enterprise Resource Planning, or otherwise known as ERP is an integrated software application, which firms use to manage and control their internal and external resources comprising financial resources, material, assets and human resources. Put simply, ERP system unites various functions of management into a rationally integrated system to streamline processes and enable the movement…

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Credit Rating

Definition: Credit Rating can be defined as the assessment of the ability of the borrower, to discharge their financial obligations. It is an approximation of the creditworthiness of an individual, entity or commercial instrument, considering various factors, representing the capability and willingness, to pay financial commitments in time. Credit rating is instrument specific and is…

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