Definition: Socialism or Socialistic Economy is an economic system wherein the whole society owns the factors of production, and its operation is in the hands of public authority. Here, the government takes major economic decisions taking into account the overall well-being of the society. Hence, all areas of the economy, be it industry, agriculture, transport or business, are … [Read more...] about Socialism
Preference Shares
Definition: Preference Shares refers to the shares that possess preferred position over other classes of shares, i.e. equity shares, as to the payment of dividend and repayment of capital, when the company goes to liquidation. The dividend to preference shareholders is either paid at a certain amount or at a certain rate. Further, the shareholders have no right to attend and … [Read more...] about Preference Shares
Bank Run
Definition: Bank Run refers to a situation in which numerous depositors of a bank rush to withdraw their money at the same time. This happens due to the fear that the bank will not be able to repay their deposited sum in full and on time. As a result of this, they start withdrawing it altogether before the situation gets out of hand. In simple words, when depositors, who … [Read more...] about Bank Run
Monopsony
Definition: Monopsony refers to an imperfect as well as rare market structure wherein there is just one buyer in the market and an infinitely large number of sellers. Further, the buyer in such a market is called a monopsonist. The buyer controls and dominates the entire market. Monopsonist gets their power from being the only consumer of the product or service. They use … [Read more...] about Monopsony
Green Tax
Definition: Green Tax is a type of excise duty which the government imposes on those vehicles which cause the dispersal of pollutants in the environment. The motive behind the introduction of a green tax is to prevent people from anti-ecological behaviour and make them more aware of environmental concerns. Another way to see this tax is that it is a fee on those vehicles which … [Read more...] about Green Tax
Leverage
Definition: In financial management, leverage implies the quantum of debt or borrowed funds deployed by a firm to finance its operations, procurement of assets like inventory, plant, building, etc. expansion projects, acquisition of new business and so forth. It ascertains the firms potential in employing borrowed funds (long-term) that carry fixed return, in order to … [Read more...] about Leverage
Advertising Techniques
Nowadays, advertising has become an indispensable part of the business. In fact, no business can survive in the long run, in the absence of proper advertisement. It not just informs the customers about the product, but also helps in boosting sales, builds reputation, creates brand awareness and increases market value. While all the companies spend on advertising, but not all … [Read more...] about Advertising Techniques
Broadcast Advertising
Definition: Broadcast Advertising means a form of advertising which uses electronic media to communicate a message to a vast audience. It makes use of airwaves as the channel through which the media is directed to get through to a wide audience. Broadcast Media ensures a large coverage with a short commercial exposure of the company's offering. This form of advertising is … [Read more...] about Broadcast Advertising
External Environment
Definition: External Environment refers to the part of the business environment which comprises all the outside elements or forces that affect the business operations. As a business cannot survive in isolation, it has to act or react effectively to every happening, just to keep the business going. Therefore, the external environment has the capability of influencing the … [Read more...] about External Environment
Advertising Appeal
Definition: Advertising Appeal means the approach of the advertiser to pull the attention of the customers towards the product or service, or influence their feelings and change their attitude towards it. It aims at prompting a response from the customer, concerning the item being advertised. An appeal can be a request, plea or anything else that arises in the interest of … [Read more...] about Advertising Appeal