Definition: Void Contract, as the name suggests is a contract which fails to be enforceable by the court of law, is said to be a void contract, at the time when it discontinues enforceability. Hence we can say that any contract, which cannot be legally enforceable or which does not have any legal effect is a void contract. These contracts are once valid but are no longer … [Read more...] about Void Contract
Agreement
Definition: In legal parlance, the word 'agreement' is used to mean a promise/commitment or a series of reciprocal promises which constitutes consideration for the parties to contract. In an agreement, one person offers or proposes something to another person, who in turn accepts the same. In other words, offer plus acceptance amounts to the agreement, or we can say that an … [Read more...] about Agreement
Revenue Expenditure
Definition: Revenue Expenditure, also known as Operating Expenses or OpEx refers to the expenditure incurred in the course of the day-to-day business activities i.e. in the production of goods and services and its sale, which facilitates revenue generation of the company. Such expenses do not increase the profit earning capacity of the business, rather it helps to maintain … [Read more...] about Revenue Expenditure
Secondary Market
Definition: Secondary market, colloquially known as the stock market is the market which provides a platform to the investors to trade in initially issued securities. This means that the securities, such as shares, bonds, debentures, futures, options, etc. are originally issued by the Corporates, Central and State government, and public bodies, in the primary market to the … [Read more...] about Secondary Market
Primary Market
Definition: Primary Market is a form of the capital market wherein new securities are sold by the companies for the very first time to the investors, to raise funds and that is why it is also acknowledged as New Issues Market (NIM). The process of selling the new securities, in the primary market is called underwriting, which is performed by a group called as underwriters or … [Read more...] about Primary Market
Capital Expenditure
Definition: Capital Expenditure or CapEx refers to the financial outlay made by the firm for an asset which is expected to stay in the business for a long time, so as to use the same for more than one financial year, which not only generates enduring benefits for the company but ensures the generation of revenue over the years. In finer terms, when the company uses its funds … [Read more...] about Capital Expenditure
Coordination
Definition: Coordination can be described as that invisible cord, which runs through all the activities of the organization and binds them together. It is not a function of the management, rather it is the essence of management, which is needed at all levels and at each step of the firm, to achieve the objectives of the organization. In basic terms, coordination means the … [Read more...] about Coordination
Knowledge Management
Definition: Knowledge Management implies the effective governance of organization's acquired and generated knowledge relating to technical know-how, insights, experiences, strategies and tactics. In finer terms, knowledge management is the process of handling organization's knowledge efficiently, so as to create value and fulfil strategic objectives. Knowledge Management … [Read more...] about Knowledge Management
Vouching
Definition: Vouching is the process of analysing vouchers of the business enterprise. It is a step pursued in auditing, with an aim of checking the accuracy and reliability of the transactions entered in the company's books of accounts. In this process, the company's transactions are thoroughly verified with the documentary evidence and the authority, which forms a basis for … [Read more...] about Vouching
Income Statement
Definition: Income Statement or otherwise called as statement of profit and loss, is the summary prepared by the company's management, reporting the revenues, expenses, gains and losses for the particular financial year. Simply put, it portrays the final result of the company's operations over a period. Income statement forms part of the company's financial statement along … [Read more...] about Income Statement