Definition: As the name suggests, 'sole' means 'only one' and 'proprietorship' implies 'ownership'. Hence, a sole proprietorship is a form of business organisation, wherein a single person owns, manages and controls, all the business activities and the individual who operates the business is called as a sole proprietor or, a sole trader. In this business unit, the sole … [Read more...] about Sole Proprietorship
Gross Domestic Product (GDP)
Definition: The term GDP stands for Gross Domestic Product, is a measure of market value of all finished goods and services which are newly produced, during a particular period and that too within the domestic territory of the country. The term domestic territory signifies a different meaning, concerning national income accounting, it includes: The area lying within the … [Read more...] about Gross Domestic Product (GDP)
Porter’s Five Forces Model
Definition: Porter's five forces model, refers to a framework based on the competitive analysis, introduced by Harvard Business School Prof. Michael E. Porter. The model determines the intensity of competition in any industry is a mix of five competitive factors operating in different areas of the whole market. The framework is an outside-in strategy tool for the business … [Read more...] about Porter’s Five Forces Model
Financial Market
Definition: Financial Market refers to a marketplace, where creation and trading of financial assets, such as shares, debentures, bonds, derivatives, currencies, etc. take place. It plays a crucial role in allocating limited resources, in the country's economy. It acts as an intermediary between the savers and investors by mobilising funds between them. The financial market … [Read more...] about Financial Market
Commercial Paper
Definition: Commercial Paper or CP is defined as a short-term, unsecured money market instrument, issued as a promissory note by big corporations having excellent credit ratings. As the instrument is not backed by collateral, only large firms with considerable financial strength are authorised to issue the instrument. Features of Commercial Paper The maturity period of … [Read more...] about Commercial Paper
Total Quality Management (TQM)
Definition: Total Quality Management, abbreviated as TQM is a people-oriented management system, wherein all the members of the organisation, makes continuous efforts so as to maintain high work standards, in all the operations of the company. Its main aim is to make a continuous increase in customer loyalty and satisfaction, at a constantly lower cost. In other words, … [Read more...] about Total Quality Management (TQM)
Strategic Business Unit (SBU)
Definition: Strategic Business Unit (SBU) implies an independently managed division of a large company, having its own vision, mission and objectives, whose planning is done separately from other businesses of the company. The vision, mission and objectives of the division are both distinct from the parent enterprise and elemental to the long-term performance of the … [Read more...] about Strategic Business Unit (SBU)
Stress
Definition: In Human Resource Management, Stress is defined as a state of mental and emotional pressure or strain, caused by challenging or unfavourable circumstances. It is an outside force that rules an individual's feelings and behaviour. It is a person's response to an external factor (stimulus, known as the stressor) in the environment and the outcome of such reaction. … [Read more...] about Stress
Interview
Definition: Interview refers to a formal, in-depth conversation between two or more persons, wherein the exchange of information takes place, with a view of checking a candidate's acceptability for the job. Objectives of Interview To evaluate the applicant's suitability. To gain additional information from the candidate. To provide general information about the … [Read more...] about Interview
Outsourcing
Definition: Outsourcing, the name itself suggest its meaning, i.e. source from outside. It refers to a practice of contracting out the non-core and sometimes core activities of the organisation to a captive unit or a third party. It is a process, in which business-houses handover their regular or peripheral work to the external organisation, who has got experience and … [Read more...] about Outsourcing