Definition: Capitalism refers to an economic and political system, wherein the private individuals own and control the country's factors of production (land, labour, capital) for making a profit. In finer terms, private property is the essence of a capitalist economy and profit works as a motivation here. Under this system, the government does not intervene in the management … [Read more...] about Capitalism
Business Environment
Definition: Business Environment means a collection of all individuals, entities and other factors, which may or may not be under the control of the organisation, but can affect its performance, profitability, growth and even survival. Every business organisation operates in a distinctive environment, as it cannot exist in isolation. Such an environment influence business … [Read more...] about Business Environment
Depreciation
Definition: Depreciation is the reduction in the utility of the fixed asset like plant & machinery, furniture & fixtures, vehicles, buildings, etc. because of obsolescence through technology or market conditions, natural wear and tear, the passage of time, exhaustion of subject matter and so on. Depreciation is a measure which calculates loss in the value of the … [Read more...] about Depreciation
Dispute Resolution
Definition: Dispute Resolution refers to a technique of settling the conflicts or claims between two parties, i.e. employer and employees. The technique aims at achieving fairness for both the groups and arriving at an agreement between by consensus, often initiated by a third party. These disputes are caused by wage demands, unfair labour practices, political interferences, … [Read more...] about Dispute Resolution
Entrepreneurship
Definition: Entrepreneurship refers to the process of creating a new enterprise and bearing any of its risks, with the view of making the profit. It is an act of seeking investment and production opportunity, developing and managing a business venture, so as to undertake production function, arranging inputs like land, labour, material and capital, introducing new techniques … [Read more...] about Entrepreneurship
Benchmarking
Definition: Benchmarking, is a tool of strategic management, that allows the organization to set goals and measure productivity, on the basis of the best industry practices. It is a practice in which quality level is used as a point of reference to evaluate things by making a comparison. The process helps in comparing and gauging the processes, programs, strategies and … [Read more...] about Benchmarking
Cash Flow Statement
Definition: Cash Flow Statement refers to an Analytical Reconciliation Statement, which shows the changes in the position of cash and cash equivalents between two periods. In addition to this, it emphasizes the reasons for such movement of cash. Cash equivalents are those investments which are short term as well as highly liquid in nature, that can be easily transformed into … [Read more...] about Cash Flow Statement
Change Agent
Definition: In business parlance, a change agent is an individual or group, who carry out the task of instigating and managing change in the organization. He/She is someone, who directly or indirectly influences change, i.e. the change agents are appointed by the organizations to transform the ways, the organization is managed, or the business is conducted. Types of Change … [Read more...] about Change Agent
IPO
IPO stands for Initial Public Offering, which is the first sale of the stock by a private or any government company that opens to the general public. The company which comes with an IPO can be new, a budding company or an old company which decides to be listed on an exchange and therefore, goes public. In an IPO the company can raise equity capital by issuing new shares to … [Read more...] about IPO
Demat Account
The word 'Demat' is the colloquial short word for 'Dematerialized account' which is a type of an account where shares and securities are held electronically to enable trading transaction & settlements in stock exchange, thereby eliminating the need of physical financial instrument. It was in the year 1996 when it was first introduced in India after the introduction of … [Read more...] about Demat Account