18Oct 2018 by Reese Bannister

Useful Notes on FDI-Related Entry Modes (Branch Office, Joint Venture, Wholly Subsidiary and Umbrella Holding Company)

Accounting
FDI-related entry mode involves actual ownership of property, projects, and businesses in a host country. An FDI project means greater control over the operations and involves higher risk and longer-term financial commitment as compared to earlier two entry modes. Image Source: i.ytimg.comOne goes in for FDI related mode only as part of grand strategy, hence takes a keen interest. FDI- related entry modes are – Branch office, joint venture, wholly owned subsidiary, and umbrella holding company. The Branch Office: ADVERTISEMENTS: “A branch office is a foreign entity in a host country in which it is not incorporated that exists as an extension of the parent and is legally constituted as a branch.” In many countries the corporate law allows such branch offices to engage into production and operating activities. However,…
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18Oct 2018 by Reese Bannister

What are the main differences between International and Domestic Businesses?

Accounting
International business is the outgrowth of domestic business. Most of the multinational enterprises (MNEs) started their operations in the domestic market. Yet, it is a fact that international business differs from domestic business in many ways (see Table 1.1). Domestic business occurs within the boundaries of a single nation, whereas international business transactions cross national borders. Image Source: blogs-images.forbes.comDue to the cross over, the firm has to deal with the forces of three types of environments, viz., domestic, foreign, and international. Cultural, political, legal, trade and technological environments overseas are likely to be different. Not only different! But also varying from country to country and region to region within one country. ADVERTISEMENTS: Renault’s “people’s car the Logan, was a hit in Eastern Europe and other parts of the world, but…
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18Oct 2018 by Reese Bannister

Which Advantage is called as the Economics of Scope in a Firm?

Management
Beside scale effect, a firm can also reduce average cost of production by increasing the number of related products in its portfolio. That is, a multiproduct firm may produce and market its products at a lower cost than manufacturing each of the products separately by different single- product firms. This advantage is called economies of scope. Image Source: globalhealthhub.orgLet x and y represent output of two different but related products. C (Q, 0) denotes total cost associated with production of QX quantity of x alone and C (0, QY) stands for total cost of producing QY quantity of y alone. C (QX, QY) represents total cost of producing QX quantity of x and QY quantity of y by one firm. Mathematically, an economy of scope exists in a two-product firm…
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18Oct 2018 by Reese Bannister

What are the 4 Types of Coordination in Organizations? – Explained!

Management
4 Types of Coordination in Organizations are as follows:i. Vertical Coordinationii. Horizontal Coordination ADVERTISEMENTS: iii. Internal Coordinationiv. External Coordination Image Source: wexlerlawgroup.com i. Vertical Coordination: Vertical coordination is the coordination between different levels of the organization to ensure that all levels of organization are in harmony with the organizational policies and programmes. This is achieved through delegation of authority by directing and by controlling. ii. Horizontal Coordination: ADVERTISEMENTS: Horizontal coordination is the coordination between departments on the same level of managerial hierarchy. Coordination between production and marketing departments at the same level or organizational hierarchy is an example of horizontal coordination. This is achieved by forming cross-functional teams and self-managed teams. iii. Internal Coordination: Vertical and horizontal types of coordination, if carried out within an organization, are called internal coordination.…
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18Oct 2018 by Reese Bannister

What is the Importance of Coordination in an Organisation? – Explained!

Strategy
Coordination is a primary method of synchronization to avoid interruptions of operations and to ensure unity of action among individuals and groups, which together help to accomplish organizational goals. Needs, significance and importance of coordination are many. Basically, we can cluster such needs in three categories as under: Image Source: cdn.yourarticlelibrary.comi. Division of labour ADVERTISEMENTS: ii. Interdependence of unitsiii. Integration of individual with organizationIn another way, such needs can be understood in the following ways:i. Coordination is important because of growth in size of organization ADVERTISEMENTS: ii. Coordination is important because of growing specializationiii. Finally, it is important due to diversity of human natureHere, however, we have discussed needs, importance and significance of coordination point wise as under:1. Specialization: ADVERTISEMENTS: Principles of division of labour and specialization require segregation of…
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18Oct 2018 by Reese Bannister

Useful Notes on State Financial Corporation’s (SFCs)

Industry
There are 18 SFCs across the country mandated to serve as Regional Development Banks for promoting industrial growth. These corporations were envisaged to function as Development Financial Institutions (DFIs) mainly for SSIs. Besides term loans for setting up new units, expansion, modernization, etc., of industrial units; they are also mandated to provide equity support wherever needed.The SFCs set up under the State Financial Corporation’s (SFCs) Act, 1951 have made significant contributions in developing industrial sector including the Small Scale Industry (SSI) Sector in India for well over past five decades. Over the years their activities have expanded considerably. However, with the passage of time, several problems connected with the structure, management and resources have confronted the SFCs.As such, their overall financial health has reached a critical state, with many of…
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18Oct 2018 by Reese Bannister

Section 304A of Indian Penal Code, 1860 – Explained!

Industry
Legal Provisions of Section 304A of Indian Penal Code, 1860.Causing death by negligence:This section punishes causing death by a rash or negligent act. It says that whoever causes the death of any person by doing either any rash act or any negligent act, and such rash or negligent act does not amount to either culpable homicide amounting to murder or culpable homicide not amounting to murder, shall be punished with simple or rigorous imprisonment for a term extending up to two years, or with fine, or with both. Image Source: cdn.shareyouressays.com ADVERTISEMENTS: In the Draft Penal Code a provision dealing with such a matter did exist but somehow the same could not find a place in the Indian Penal Code at the time of its enactment. This section was added…
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18Oct 2018 by Reese Bannister

Summary of MSMED Act, 2006

Business
The MSMED Act, 2006 Containing Six Chapters Broadly Deals With The Following Aspects: Image Source: blog.theteamw.com Chapter I: This chapter deals with the preliminary aspects like Definition of Act, Date of Commencement, terms like Days of acceptance, Day of deemed acceptance, buyer, enterprise, goods. Chapter II: Deals with the setting up of National Board for Micro, Small & Medium Enterprises. The head office of the board shall be at Delhi. ADVERTISEMENTS: A Minister and Dy. Minister at the Centre, Six Ministers of the State Governments, five Members of the Parliament, one Administrator of Union territory, Secretaries of the Indian Govt., representatives of Industry, Finance, Food Processing, Labour and Planning, Chairman of the Board of Directors of the National Bank; Chairman & MD of SIDBI, Chairman IBA, 20 persons to represent…
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17Oct 2018 by Reese Bannister

Short Summary of “The Guide” by R.K. Narayan

Management
The Guide is the most popular novel of R.K. Narayan. It was published in 1958, and won the Sahitya Akademy Award for 1960. It has also been filmed and the film has always drawn packed-houses.It recounts the adventures of a railway guide, popularly known as ‘Railway Raju’. As a tourist guide he is widely popular. It is this profession which brings him in contact with Marco and his beautiful wife, Rosie. While the husband is busy with his archaeological studies, Raju seduces his wife and has a good time with her. Ultimately Marco comes to know of her affair with Raju and goes away to Madras leaving Rosie behind. Rosie comes and stays with Raju in his one-room house. His mother tolerates her for some time, but when things become…
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17Oct 2018 by Reese Bannister

4 Main Causes for the Rapid Growth in the Quantity of Solid Waste

Industry
The main causes for the rapid growth in the quantity of solid waste are: 1. Overpopulation: Due to increasing industrialization and population large quantities of wastes are being generated in different forms such as- solid, liquid, sludge and gases. Each city produces tones of solid wastes daily from households, hospitals, industry offices, market centers etc.Some of these are biodegradable some are non biodegradable and Hazardous waste. Wastes are directly thrown away on the street roads, city garbage collecting places etc. Out of which most of it still remain there, which later pile up and chocks cities drainage lines. Image Source: 3.bp.blogspot.com Urbanization: ADVERTISEMENTS: Due to pressure of urbanization most of the cities are growing fast and sometimes they develop beyond the planned limits. Generally the unplanned areas of the city…
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