Definition: Certificate of Deposit (CD) implies an unsecured, money market negotiable instrument, issued by the commercial bank or financial institution, either in demat form or as a usance promissory note, at a discount to face value at market rates, against the amount deposited by an individual, for a stipulated time. In finer terms, certificate of deposit is a fixed … [Read more...] about Certificate of Deposit (CD)
Competitive Intelligence
Definition: In business parlance, competitive intelligence can be understood as the process of identifying, gathering, evaluating and disseminating, information concerning competitor's strengths and weaknesses, products, and customers, which a firm requires for strategic decision making. In other words, it is a legal and ethical practice that helps in improving the firm's … [Read more...] about Competitive Intelligence
Lean Management
Definition: Lean management refers to a technique developed with the aim of minimising the process waste and maximising the value of the product or service to the customer, without compromising the quality. It is coined by Toyota Production System, which is a part of lean thinking. Lean is possible through distinct techniques such as flow charts, just in time, total quality … [Read more...] about Lean Management
Target Costing
Definition: Target costing can be viewed as a proactive cost management tool used to reduce the total cost of the product, over its complete lifecycle, through production, engineering, research and design. It helps the firm in managing the business in reaping profits in the extremely competitive market. Simply put, target costing is a process of ascertaining and attaining … [Read more...] about Target Costing
Merchant Banking
Definition: Merchant banking can be defined as a skill-oriented professional service provided by merchant banks to their clients, concerning their financial needs, for adequate consideration, in the form of fee. Merchant banks are a specialist in international trade and thus, excel in transacting with large enterprises. Services offered by Merchant Banks Merchant Banks … [Read more...] about Merchant Banking
Organization
Definition: Organization refers to a collection of people, who are involved in pursuing defined objectives. It can be understood as a social system which comprises all formal human relationships. The organization encompasses division of work among employees and alignment of tasks towards the ultimate goal of the company. It can also be referred as the second most important … [Read more...] about Organization
Work Measurement
Definition: Work measurement can be defined as the implementation of a series of techniques which are designed to find out the work content, of a particular task or activity, by ascertaining the actual amount of time necessary for a qualified worker, to perform the task, at a predetermined performance level. The essence of work measurement is ascertaining the work content of … [Read more...] about Work Measurement
Vertical Integration
Definition: Vertical Integration, as the name suggests, is the combination of firms engaged in different levels of the distribution chain, in the same industry. It involves the augmentation of the firm by uniting the former and latter productive processes. In this form of merger, the company opts to engage in the businesses, which have some link with the existing business … [Read more...] about Vertical Integration
Factoring
Definition: Factoring implies a financial arrangement between the factor and client, in which the firm (client) gets advances in return for receivables, from a financial institution (factor). It is a financing technique, in which there is an outright selling of trade debts by a firm to a third party, i.e. factor, at discounted prices. Factoring is a financial alternative, in … [Read more...] about Factoring
Strike
Definition: In business terms, a strike can be understood as a curtailment of work, due to the collective refusal of workers to work, which occurs as a response to employee grievances. It involves, dropping out of work by any number of workers, employed in a particular industry, with an aim of creating pressure on the employers, to accept their demands relating to pay scale, … [Read more...] about Strike