07Oct 2018 by admin

10 Important Objectives of Inventory Management

Accounting
The investment in inventory is very high in most of the organisations engaged in manufacturing, wholesale and retail trade. The amount of investment is sometimes more in inventory than in other assets. image source: boardroommetrics.comAbout 90% part of working capital is invested in inventories. It is necessary for every management to give proper attention to inventory management. A proper planning of purchasing, handling, storing and accounting should form a part of inventory management. An efficient system of inventory management will determine (a) what to purchase (b) how much to purchase (c) from where to purchase (d) where to store, etc. ADVERTISEMENTS: The purpose of inventory management is to keep the stock in such a way that neither there is overstocking nor understocking. The overstocking will mean a reduction of liquidity…
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07Oct 2018 by admin

Essay on Important Theories of Motivation

Decision Making
Essay on Important Theories of Motivation!Motivations can be studied through several broad approaches. There are “Content theories” which focus on the internal needs that motivate people. The “Process theories” of motivation focus on how people choose certain behaviours to satisfy their needs and how they judge their satisfaction. Image Source: davidcbetts.files.wordpress.com/2012/04/hierarchy-of-needs.jpg ADVERTISEMENTS: The “Reinforcement theory” focuses on the relationship between behaviour and its consequences. The interest here is to manipulate consequences in order to change any undesirable behaviours into desirable ones. These theories are described in greater detail. The Content Theories of Work Motivation: The content theories have been developed to explain the nature of motivation in terms of types of needs that people experience. They attempt to focus on factors within a person that initiate and direct a certain…
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07Oct 2018 by admin

Essay on the Basic Principles of Organization

Management
Every enterprise sets its own goals and people working in the enterprise are in pursuit of these goals. In order to make it possible for people to work effectively towards accomplishing goals, an internal structure or roles or positions must be designed. image source: c14608526.r26.cf2.rackcdn.comThis managerial function is called organising. Thus, organising is a basic process a manager uses to unite the work of different people towards a common objective. Irrespective of the number of people large and small their effective co-operation is possible through organisation. ADVERTISEMENTS: According to Peter F. Drucker, “A good organisation structure does not by itself produce good performance just as a good constitution does not guarantee great Presidents, or good laws of a moral society. But a poor organisation structure makes good performance impossible, no…
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06Oct 2018 by admin

Short Essay on the Exchange Risk Management in the International Business

Management
During the halcyon days of fixed exchange rates the period between World War II to 1971 when major currencies were pegged to each other, occasional changes in the external values of currencies were made only under extreme circumstances that too through devaluation in neat steps against the dollar Furthermore, indications of likely rate changes were normally available to the market well in advance. image source: oswaldcompanies.comManagement of foreign exchange risk, therefore, was not really one of the crucial inputs of an organisation with international operations in those days. The priorities have, however, changed dramatically in the present era of floating exchange rates, when management of foreign exchange risk has become very important and simultaneously also very complex. ADVERTISEMENTS: External values of currencies are affected by a variety of causes such…
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06Oct 2018 by admin

6 Important Features of Exchange Rate Management for Indian Companies

Management
The important features of exchange rate management for Indian companies are listed below:1. Managing the exchange risk arising out of import/export transactions is possibly the most relevant for Indian Companies. There is a forward market in India where forward cover for normally upto 6 months can be obtained by the companies. image source: blog.orbitremit.com ADVERTISEMENTS: While taking decisions in this regard, they have to consider the Exchange Control Regulations in India, currency price movements in the international markets and the trends in rupee exchange rates.2. The simplest objective of an active exchange risk management system would be to obtain the most favourable exchange rate for all the foreign currency transactions of the company.The really effective method of managing currency exposure is to budget for specific rate of exchange for the…
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06Oct 2018 by admin

Commerce Question Bank – 30 Short Questions With Answers on “Marketing Management”

Branding
36 Short Questions with Answers on “Marketing Management” for Commerce Students: image source: iampyourbrand.com1. What is scalloped product life cycle? In the scalloped P. L.C., sales pass through a succession of life cycles based on the discovery of new- product characteristics, uses or users. Nylon’s sales, for example, show a scalloped pattern because of the many new uses – parachutes, hosiery, shirts, carpeting, boat sails, automobile tires – that continue to be discovered overtime. ADVERTISEMENTS: 2. What is product development? Development of new products refers to the different products a company plans, develops and markets It consists of creation of new ideas, determining their sales potential, profitability, production requirements, investment and other resources needed and then producing.The product is then tested before marketing it on large scale. The decision to…
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06Oct 2018 by admin

Commerce Question Bank – 27 Short Questions With Answers on “Financial Management”

Accounting
27 Important Short Questions with Answers on “Financial Management” for Commerce Students: image source: cottoncpa.com1. What do you understand by the cost of capital? The cost of capital to a company is the rate of return it must earn in order to satisfy the expectation of investors who provide long term funds to the firm. Cost of capital is a concept in financial management linking the investment and financing decisions. ADVERTISEMENTS: 2. Why is the cost of capital important? It is important for three reasons:1. For proper analysis of capital expenditure decisions, which are of prime importance to a firm, an estimate of cost of capital is required. The cost of capital is the discount rate used in NPV calculations and also the financial yardstick against which rate of return…
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06Oct 2018 by admin

Difference between “Fair Wage”, “Living Wage” and “Actual Wage”

Industry
Difference between “Fair Wage”, “Living Wage” and “Actual Wage” are described below: 1. Fair Wage: That level of wage which is sufficiently high to provide a standard family with food, shelter, clothing, medical care and education of children, appropriate to the workman but not at rate exceeding his wage earring capacity in the class of establishment of which he belongs. image source: syp.org.uk ADVERTISEMENTS: A fair wage is thus related to the earing capacity and work load. It should not be lower than the minimum wage in any case.So lower limit being the minimum wage, the upper limit would be set by what may broadly be called the capacity of industry to pay (i.e. living wage) depending not only on its present economic position but also on its future prospects.…
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06Oct 2018 by admin

What are the Six Important Steps of Marketing Research Process?

Management
Six Important Steps of Marketing Research Process are described below: 1. Recognising and Defining the Problem: The researcher must know what the management wants him to do It will necessitate a clear cut definition of the problem. For instance, if management wants to find out ways for increasing the sales the researcher should define the problem which will help him to find out the ways which can be followed for increasing sales. image source: growmelbourne.org ADVERTISEMENTS: He has to study the possibility of exploring new markets, finding out new uses of the product, impact of price cuts, likely effect of giving incentive discount, etc. A number of hypothesis i.e., possible variables or answers to the problem should be developed to be tested with the research. 2. Developing Alternative Courses of…
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06Oct 2018 by admin

What are the 5 Major Limitations of Marketing Research?

Marketing
Important limitations which are suffered by the marketing research are as follows: 1. Time Consuming: Marketing research is time consuming. It requires too much of time to reach the final conclusions. There may be a considerable time gap between the inception and completion of the research. image source: cdn2.hubspot.net ADVERTISEMENTS: There may be impatience among marketing executives about the conclusions of the research study. The results of such studies may be known after long periods. The preparation and implementation of research programmes takes too much time. So market research does not give quick conclusions. 2. Lack in Appreciating Rupee Value: In many cases it may be impossible to translate the value received from marketing research into rupees. The managements want to see the immediate results of such studies.They want to…
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