Definition: The Loan Company is a financial institution principally engaged in the business of providing finance to the public, whether by making loans or advances or otherwise, for any activity other than its own (Excludes equipment leasing and hire-purchase activities). The loan is a kind of an agreement wherein the lender temporarily lends property, usually cash to the … [Read more...] about Loan Company
Hire-purchase Company
Definition: The Hire-Purchase Company is yet another non-banking finance company that principally deals in the business of hire-purchase transactions and the financing of such activities. The Hire-Purchase means buying the goods on an installment plan. This means the hirer can buy commodities in exchange for the regular installment payments (principal amount+ interest) over … [Read more...] about Hire-purchase Company
Equipment Leasing Company
Definition: The Equipment Leasing Company is a non-banking finance company which is primarily engaged in the business of leasing of equipment or financing of such activity. The term “lease” refers to the contractual agreement between the lessor (owner) and the lessee (hirer) wherein the lessor grants right to the lessee to use the equipment in exchange for the periodical … [Read more...] about Equipment Leasing Company
Investment Companies
Definition: The Investment Companies are the non-finance banking companies that are primarily engaged in the business of buying and selling of securities. Simply, a company that pools the resources of investors to reinvest it in the marketable securities ranging from shares to debentures to money market instruments are called the investment companies. The investment … [Read more...] about Investment Companies
Mutual Benefit Finance Companies
Definition: The Mutual Benefit Finance Companies also called as "Nidhis", are the non-banking finance companies that enable its members to pool their money with a predetermined investment objective. The main sources of funds are share capital, deposits from its members, deposits from the general public. In other words, any company which has been notified by the Central … [Read more...] about Mutual Benefit Finance Companies
Non-Banking Financial Companies (NBFCs)
Definition: The Non-Banking Financial Companies (NBFCs) are the financial institutions that offer the banking services, but does not comply with the legal definition of a bank, i.e. it does not hold a bank license. The non-banking financial companies are registered under the Companies Act, 1956 and deals in the business of loans and advances, investments in … [Read more...] about Non-Banking Financial Companies (NBFCs)
Steps involved in Business Process Reengineering
Definition: The Business Process Reengineering is the examination and redesign of business process to achieve the dramatic improvement in its performance, productivity, and quality. The Business process reengineering comprises of following steps: Define Objectives and Framework: First of all, the objective of re-engineering must be defined in the quantitative and … [Read more...] about Steps involved in Business Process Reengineering
Business Process Reengineering
Definition: The Business Process Reengineering or BPR is the analysis and redesign of core business processes to achieve the substantial improvements in its performance, productivity, and quality. The business process refers to the set of interlinked tasks or activities performed to achieve a specified outcome. Simply, the business process reengineering means to change the … [Read more...] about Business Process Reengineering
Types of Strategic Alliances
Definition: The Strategic Alliance is a cooperative agreement between two companies that agree to share resources to pursue the common set of goals but remain independent after the formation of the alliance. The strategists Yoshino and Rangan have classified the strategic alliance based on two dimensions: Extent of organizational interaction and conflict potential among the … [Read more...] about Types of Strategic Alliances
Strategic Alliance
Definition: The Strategic Alliance refers to the agreement between two or more firms that unite to pursue the common set of goals but remain independent after the formation of the alliance. In other words, when two companies come together to achieve the common objective by sharing the particular strengths (resources) with each other is called as a strategic alliance. The … [Read more...] about Strategic Alliance