Category: Investment

Merits and Demerits of Monopoly Market are described below:Before we get carried away with some of the negative features of monopoly, let us look at its positive features too. A monopoly possesses the following merits. (i) Potential to stand depression: Due to its extensive financial resources, a monopoly firm can survive the shocks of falling prices and the consequential losses, which, to small sized competitive firms, prove fatal during the period of depression. ADVERTISEMENTS: Small competitive firms close down due to losses, while monopoly firms not only fare through them but even succeed in maintaining the price level. Image Source: lionsheartcounseling.com (ii) Potential for Research and Development: Due to its large financial resources, a monopoly can introduce any type of invention or improved technology which is deemed crucial for its…

A mixed economy is characterized by the following features: Features 1. Co-existence of public and private sectors: Both public and private enterprises exist in this economic system. The role and areas of both the sectors arc well defined.The relative roles assigned to the public and private sector differ from economy to economy. But generally the public sector is expected to perform certain basic functions such as: ADVERTISEMENTS: (i) Development of economic infrastructures.(ii) To promote basic industries that require huge investment and are of long gestation periods;(iii) To promote industries in backward regions where inducement to invest is low.(iv) To develop defence production industries in public sector. ADVERTISEMENTS: Similarly, the private sector is expected to supplement the efforts of public sector and to take advantages of investment opportunities enhanced by public…

Free sample essay on the Aim of Education (Free to read). The main aim of education is the all-round development of a student. Its purpose is to develop a student into a full, whole and integrated person.The main aim of education is the all-round development of a student. Its purpose is to develop a student into a full, whole and integrated person. Thus, the objectives to be achieved through education and training are many and comprehensive. Education helps in achieving and developing skills, abilities, insights and scientific temper. Besides literary and aesthetic appeal of education, there are utilitarian aspects as well and they are equally important. Education aims at developing and bringing out the best of a student’s inner personality, without neglecting the outer and material aspects. Education also means…

Usually, the following reasons are given for the issue of Bonus Shares: (1) When the company has sufficient reserves, which it does not need in future, it issues Bonus Shares. ADVERTISEMENTS: (2) When there is a big gap between the paid-up capital and the capital actually employed in the business of account of huge reserves, it is thought proper to issue Bonus Shares and, thus to fill up the gap. (3) Payment of dividend at a high rate is possible if there are excessive divisible profits with the company. This attracts the competitors in the business. Thus, Bonus Shares are issued to reduce the rate of dividend and to regularize it from year to year. Image Source: cdn.publishyourarticles.net (4) A high rate of dividend paid to the shareholders is usually…

The Indian economy is the second fastest growing major economy in the world. In terms of Purchasing Power Parity, the Indian economy is the third largest in the world. Its gross domestic product is US $ 3.666 trillion. In 2003, economist at Goldman Sachs had predicted that by the economies of the BRIC (Brazil, Russia India and China) nations would overtake the US and Japan in wealth generation. They would also produce 40% of the world’s GDP If these predictions come true, India will become the world’s largest economies. Some reasons why this will be possible for India, ii an open society, public higher education skilled labor force proficient in English and computers. Considering that India was a colonized country only six decades ago, such a grow only be termed…

Ever since India achieved Independence from British rule on 15th August, 947, it has been following a policy of peaceful co-existence with its neighbor’s the rest of the world. Pt. Jawahar Lai Nehru, the first Prime Minister of India the architect of this policy.In fact, Mr. Nehru had spelt out the basic parameters of India’s foreign lice in 1946. He declared, “We propose, as far as possible, to keep away from e power politics of groups, aligned against one another, which have led in e past to world wars and which may again lead to disasters on an even vaster scale.As regards India’s policy of supporting freedom movements, Pt. Nehru id, “We believe that peace and freedom are indivisible…. We are particularly retested in the emancipation of colonial and dependent…

Five Characteristics of Socialism are as follows: 1. Government ownership of productive resources: The role of private property is to be lessened as key industries are nationalised.2. Planning: ADVERTISEMENTS: Socialist economy is a planned economy. Instead of permitting the free play of profit motives in a laissez-faire market economy, co-ordinate planning is introduced.Sometimes the programme of “production for use rather than profit” is advocated, advertising expenditure on gadgets is reduced, workers and professional people are to develop instincts of craftsmanship and social service so that they will be guided by other motives than those of “acquisitive society”. Image Source: stlouis-mo.gov 3. Redistribution of income: Inherited wealth and swollen incomes are to be reduced by militant use of government taxing powers. Social security benefits, free medical care, and cradle to the…

One of the most important concepts in all economies is the national income or technically GNP. This measures the economic performance of the whole economy. Of course man does not live by bread alone. Nor does society live by GNP alone.But on our way to economic advancement we do need a summary measure of aggregate economic performance.Practical application of managerial theory to problems of forecasting or formulation of appropriate fiscal policy for the government requires acquaintance with national income and its measurement. Image Source: cdn.publishyourarticles.net ADVERTISEMENTS: An individual starts first with an account of his total money income and then studies how he can increase its size and how he can distribute it on various items of expenditure so as to secure the maximum benefit for himself and his family.…

Corruption is rampant in India. It is like a cancer that is eating away at the innards of the country. Government employees are some of the most corrupt people in India. Of course not all of them are corrupt but a good percentage of them take bribes from those who approach them to get something done. One reason for this is that government employees in most states are not paid good salaries and wages remain stagnant in public sector companies for years. As the cost of living increases, people find it hard to make ends meet and they resort to corruption to make extra income.If you want to get a driving license or a ration card or a marriage certificate or a birth or death certificate, most probably you may…

Essay on Social Importance of Work and Occupations – Work and Occupation have assumed utmost social importance today. They have not only so­cial importance but also economic, psychological and human significance.(i) They Satisfy the Material Needs of Man:Work and Occupations are a fundamental necessity in life. Society depends upon the production of food, machine, various utensils and ar­ticles of daily use, newsprint, etc. The very existence of man depends upon the production of neces­sities of life. Work and Occupations are the means of producing them. ADVERTISEMENTS: (ii) They Satisfy Man’s Social and Psychological Needs Also:Work is not the same thing as physical effort or the expenditure of energy. What is and what is not work is socially defined. It is not a quality inherent in any particular act. It is…