19Nov 2018 by admin

7 Limitations of Linear Programming – Explained!

Tech & Engineering
Limitations of linear programming are as follows:Although LP is an improvement over conventional theory of production yet it is not free from limitations LP is an important technique of planning.But the real problems of planning cannot be solved directly by L P. because it has certain limitations and these are following: ADVERTISEMENTS: 1. To specify an objective function in mathematical form is not an easy task.2. Even if objective function is determined, it is difficult to determine social, institutional, financial and other constraints.3. It is also possible that the objective function and constraints may not be directly specified by linear in equality equations.4. To determine the relevant values of the co-efficient of constraints involved in LP is a main problem. Image Source : desertsojourn.com ADVERTISEMENTS: 5. The assumptions of LP…
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19Nov 2018 by admin

6 Important Factors that are Involved in Demand Forecasting

Industry
Important factors that are involved in demand forecasting: Factors (i) Period of forecasting: Demand forecasting may be short-term or long-term. A short-term demand may cover a period of three months, six months or one year but not exceeding one year and long forecasting covers a period exceeding 5 years.A business should forecast short term as well as long term sales/demand for its products to have a clear view of business activities. ADVERTISEMENTS: An alternative method may be to associate the long term and short term forecasting with certain types of decisions.Thus, short term forecast is one which provides information for day to day operations within the limits of resources currently available. Whereas long term forecasting is more concerned with decisions extending or reducing the units of resources. Image Source :…
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19Nov 2018 by admin

12 Important Criticisms against Keynesian Theory of Unemployment

Industry
Criticism 1. Does not provide comprehensive solution of unemployment: Keynes theory does provide solution of all types of unemployment. It deals with only cyclical unemployment.Keynes did not attempt to solve frictional, technological unemployment and chronic unemployment of under-developed countries.Keynes did not elaborate how to secure fair employment. A complete theory should explain how to get both full and fair employment. Image Source : peacechild.org 2. Unrealistic assumption of perfect competition: In real business world imperfect competition is found instead of perfect competition even in capitalist economics. Therefore, it is not applicable in advanced economies. 3. No determinate functional relationship between effective demand and employment: Critics point out that there cannot be a definite functional relationship between ED and employment. Keynes did not provide any evidence of this functional relationship.There is…
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19Nov 2018 by admin

Trade-Related Aspects of Intellectual Property Rights (TRIPS)– Essay

Marketing
The development of international trade can be adversely affected, if the standards adopted by countries to protect Intellectual Property Rights (IPRs) vary widely from one country to another.Furthermore, the ineffective enforcement of such rights can encourage trade in counterfeit and pirated goods, thereby damaging the legitimate commercial interests of manufacturers who hold or have acquired these Rights.The TRIPS Agreement, negotiated in the Uruguay Round, therefore lays down the minimum standards for the protection of OPRs as well as procedures and remedies for their enforcement. Image Source: blog.consultlane.com ADVERTISEMENTS: It establishes a mechanism for consolation and surveillance at the international level to ensure compliance with these standards by member countries at the national level.The obligations of the World Trade Organisation (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) came…
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19Nov 2018 by admin

Useful Notes on Short-Run and Long-Run Fiscal Policy for Shaping Taxation and Public Expenditure

Budget
Modern fiscal policy involves the process of shaping taxation and public expenditure in order to (1) reduce the fluctuations of trade cycle and (2) to contribute towards the maintenance of a growing, high-employment economy free from excessive inflation or deflation.When private investment and consumption spending create an inflationary (or deflationary) gap, it is the task of fiscal and monetary policy to offset the gap in the attempt to preserve price stability and full employment. The objective of fiscal policy is to achieve growth and full employment without inflation.Fiscal weapons refer to taxation and expenditure policies. In this connection, modern economy is blessed with important “built-in stabilizers.” Image Source: i.ytimg.com ADVERTISEMENTS: Without any discretionary action, tax receipts change automatically when income changes, thereby reducing the size of the multiplier and serving…
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19Nov 2018 by admin

Essay on the Trade Relationship between Russia and India

Currency
The Russian Federation which represents the major portion of the former USSR continues to be India’s most important economic partner in the region.The bilateral framework Agreement on Trade and Economic Cooperation with Russian Federation, signed on 22nd May, 1992, provides that all transactions between the two countries would be undertaken in hard currency, unless otherwise specified by Intergovernmental Agreements.The only exception with Russia is that trade is also carried on through debt repayment route and escrow accounts. The bulk of our export to Russian Federation is moving through these routes. Image Source: trbimg.com ADVERTISEMENTS: During the year 1998-99, the following meetings have been held to discuss various matters regarding bilateral cooperation:-(a) The Fifth session of the Indo-Russian Joint Commission for which, the Ministry of External Affairs is the nodal agency,…
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19Nov 2018 by admin

Provisions of the companies act, 1956 with regard to the appointment of an auditor

Government
Appointment: The appointment of auditors is dealt with in section 224 of the Companies Act, 1956, the provisions of which are as under: Every company, even a private company, must appoint an auditor or auditors to audit its Annual Accounts. There are following three authorities to appoint auditors: Image Source: stratheskmedicalpractice.co.uk ADVERTISEMENTS: 1. Directors: The first auditors of a newly floated company are appointed by the Board of Directors within one month of the registration of the company, and the auditors so appointed shall hold office till the conclusion of the First Annual General Meeting. The Directors are also empowered to fill any casual vacancy in the office of an auditor except one which is caused by prior resignation. The auditor so appointed shall hold office until the conclusion of…
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19Nov 2018 by admin

10 important rights and duties of the auditor of a company in India

Accounting
According to section 227 (1) of the Companies Act, 1956, a company auditor has the following rights: 1. Right of Access to Books of Accounts: ADVERTISEMENTS: Every auditor of a Company has a right of access at all times to the books of accounts and vouchers of the company whether kept at the head office of the company or elsewhere. Thus, the auditor may consult all the books, vouchers and documents whenever he so likes. This is his statutory right. He may pay a surprise visit without informing the Directors in advance but in practice, the auditors inform the Directors before they pay their visits. Image Source: ifaedu.in 2. Right to obtain Information and Explanations: He has a right to obtain from the Directors and officers of the company any…
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19Nov 2018 by admin

What are the provisions relating to qualifications and remuneration of an auditor in India?

Government
Remuneration of an Auditor: The general rule is that the appointing authority is authorized to fix the remuneration of an auditor. According to the provisions of section 224(8), the arrangement may be described as under: ADVERTISEMENTS: (1) If an auditor is appointed by the Board of Directors or the Central Government, his remuneration is to be fixed by the Board or Central Government as the case may be. (2) In other cases, the remuneration of the auditor shall be fixed by the company in General Meeting or in such a manner as the company in General Meeting may determine. For this purpose, the expression ‘remuneration’ includes any sums paid by the company in respect of the auditor’s expenses. Image Source: cpaorlando.net ADVERTISEMENTS: Qualifications of an Auditor: According to section 226…
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19Nov 2018 by admin

Essay on the Criticism of the Welfare State

Government
Some critic’s have challenged the concept of the welfare State. While one critic calls it as the “broker’s view of the State”, the other critic thinks that it has acted as a ‘shock-absorber’ in order keep the continued survival of the unjust capitalist system. The following are some of the criticisms. i) Undue Importance to bureaucracy: Bureaucracy is given undue impotence in a welfare State. Expansion of the State activities results in the concentration of powers in the hands of the bureaucrats. They become very powerful and act like despots.” Image Source: leapcs.ca ADVERTISEMENTS: ii) Unsuitable to a poor country : As a huge ‘amount of money is needed for welfare measures, poor countries can hardly afford it. If they borrow from rich countries, their conditions become worse as they…
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