Definition: Diversification can be understood as the corporate strategy that a company implements to increase the market share and sales volume by introducing new products in new markets or industry, which is distinct from its core business. Simply put, diversification refers to the expansion of business by entering into a completely new segment or investing in a business … [Read more...] about Diversification
Functional Level Strategy
Definition: Functional Level Strategy can be defined as the day to day strategy which is formulated to assist in the execution of corporate and business level strategies. These strategies are framed as per the guidelines given by the top level management. Functional Level Strategy is concerned with operational level decision making, called tactical decisions, for various … [Read more...] about Functional Level Strategy
Competitive Strategy
Definition: Competitive Strategy can be defined as the firm's long term action plan that formulated by considering several external factors, that helps the company to achieve competitive advantage, increase the share in the market and overpower rivals. Competitive advantage is the result of the firm's excellence in performing activities. The firm's external environment, has … [Read more...] about Competitive Strategy
Capital Structure
Definition: Capital structure, as its name itself signifies, is the composition of the capital employed by the firm from various sources of finance. It comprises of both owners capital (i.e. equity capital and preferred capital) and debt capital. The capital structure of the firm represents its investment and financing strategy. While deciding the ideal capital structure for … [Read more...] about Capital Structure
Treasury Management
Definition: Treasury Management can be understood as the planning, organizing and controlling holding, funds and working capital of the enterprise in order to make the best possible use of the funds, maintain firm's liquidity, reduce the overall cost of funds, and mitigate operational and financial risk. It covers working capital management, currency management, corporate … [Read more...] about Treasury Management
Types of Issue of Shares
Definition: A share is that smallest part, into which the overall capital of the company is divided. Issue of shares is a process through which the company allocates fresh shares to the new or existing shareholders. The issue of shares is made to both individuals, institutions or body corporates. Types of Issue of Shares There are a number of ways in which the shares of a … [Read more...] about Types of Issue of Shares
Shares
Definition: Shares can be described as the financial instrument issued by the company to raise funds from the general public. A share represents fractional ownership in a body corporate. Thus, a share is the smallest unit of the company's overall net worth. In a joint stock company, the capital is divided into very small units, say the capital is Rs 5,00,000 and it is … [Read more...] about Shares
Types of Companies
Definition: A company is that form of business organization, which is created by law. It refers to an association of persons, created to undertake business activities, having a separate legal existence, perpetual succession and a common seal. It is a legal entity incorporated under the Companies Act, 2013 or any other previous acts, prevalent in the country. Types of … [Read more...] about Types of Companies
Decentralisation
Definition: Decentralisation can be understood as the orderly assignment of authority, throughout the levels of management, in an organisation. It describes the way in which power to take decisions is allocated among various levels in the organisational hierarchy. In other words, it refers to the dissemination of powers, functions and responsibility, away from the central … [Read more...] about Decentralisation
Company
Definition: A company can be defined as an incorporated voluntary association of persons formed by law for a definite purpose, as an artificial person with a separate legal existence. Key Terminology Members: The persons who invest their money or money's worth towards the common stock and whose name is listed in the register of members of the company are called as … [Read more...] about Company