Participative Management – Workers Participation in Management

Human Resource Management

Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

How to Meet Costa Rica’s 2026 VASP Requirements Without Expanding Headcount

General Business Articles

Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Why Shareholder Wealth Maximization is Important in Business?

In modern finance, it is proven that shareholder wealth maximization is the superior goal of a firm and shareholders are the residual claimants; therefore maximizing shareholder returns usually implies that firms must also satisfy stakeholders such as customers, employees, suppliers, local communities, and the environment first. Also, a firm’s value can not be maximized if the management board or shareholders ignores the interest of its stakeholders. Thus, the main goal of a firm is to maximize shareholder wealth but it does not mean that management should disregard stakeholders. To begin with, it is necessary to understand what is shareholder wealth and why maximizing shareholder wealth is a superior objective? Maximizing shareholder wealth is defined as maximizing purchasing power as well as the flow of dividends to shareholders through time and it is a long-term perspective. In addition, a very important point to explain why shareholder wealth maximization is superior objective Continue reading

Abey Francis

Doctrine of Ultra Vires

‘Ultra’ means beyond and ‘vires’ means powers. The term ultra vires a company means that the  doing of the act is beyond the legal power and authority of the company. The doctrine of ultra vires is  important in defining the limits of the powers conferred on the company by its Memorandum of  Association. According to this doctrine, the vires (power) of a company to enter into a contract or  transaction is limited by the ambit of the Objects Clause of the Memorandum and the provisions of the  Companies Act. Whatever is not permitted by the Objects Clause and the Act, is prohibited by the  doctrine of ultra vires. If a company engages in any activity or enters into any contract which is ultra  vires (outside the power conferred by) the Memorandum or Act, it will be null and void so far as the  company is concerned and it cannot be Continue reading

Abey Francis

Disadvantages of Value Added Tax (VAT)

1) VAT is regressive: It is claimed that the tax is regressive, i.e its burden falls disproportionately on the poor since the poor are likely to spend more of their income than the relatively rich person. There is merit in this argument, particularly if it attempts to replace direct or indirect taxes with steep, progressive rates. However, observation from around the world and even Guyana has shown that steep tax rates lead to evasion, and in the case of income tax act as a disincentive to effort. Further, there is now a tendency in most countries to reduce this progressivity of taxes as has been done in Guyana where a flat rate of income tax has been introduced. In any case VAT recognises and makes room for progressivity by applying no or low rates of tax on essential items such as food, clothes and medicine. In addition it allows for Continue reading

Abey Francis

Finance Lease – Definition and Features

A lease is defined as finance lease if it transfers a substantial part of the risks and rewards associated with ownership from the lessor to the lessee. According to the International Accounting Standards Committee (IASC), there is a transfer of a substantial part of the ownership-related risks and rewards if: i. The lease transfers ownership of the asset to the lessee by the end of the lease term; (or) ii. The lessee has the option to purchase the asset at a price which is expected to be sufficiently lower than the fair market value at the date the option becomes exercisable and, at the inception of the lease, it is reasonably certain that the option will be exercised; (or) iii. The lease term is for a major part of the useful life of the asset. The title may or may not eventually be transferred; (or) iv. The present value of Continue reading

Abey Francis

Limitations of Planning

The planning function of management is the most crucial function as it pertains to plan about the future and designing several future courses of actions. It is a preliminary move in the functioning of a firm. It is an organized activity that defines when, how and who is going to execute an explicit task. Planning function of management is also recognized as a detailed programme concerning future courses of action. With the help of planning, it becomes easy for a firm to consider all its available & potential human and physical resources. This consideration facilitate in getting an effective co-ordination, involvement & ideal balance. Although  planning is an important function of management. However, the planning may fail if the following limitations. Lack of accuracy: planning relates to future and future is always uncertain and so prediction about future is so much difficult. Moreover planning are based on data/information relating to Continue reading

Abey Francis

Different Theories for Managing Compensation

The basic purpose of wage and salary administration is to establish and maintain an equitable wage and salary structure. Its secondary objective is the establishment and maintenance of an equitable labor-cost structure i.e., an optimal balancing of conflicting personnel interests so that the satisfaction of employees and employers is maximized and conflicts are minimized. The wage and salary administration is concerned with the financial aspects of needs, motivation and rewards. Managers, therefore, analyze and interpret the needs of their employees so that reward can be individually designed to satisfy these needs. The word ’salary’ is defined in the Oxford Dictionary as ‘fixed periodical payment to a person doing other than manual or mechanical work’. The payment towards manual or mechanical work is referred to as wages. The word pay refers to the payment for services done which would include salary as well as wages. Wages are commonly understood as price Continue reading

Abey Francis