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 should a company try to price it’s public issue of shares as high as possible?

In fact, any company trying to price its public issue higher than its market price is being silly.   For that matter any company trying to price any of its products higher than the market price is being silly.   It should be obvious, that in such a case the investor (or the customer) will eject the offered share (or the product) outright, unless the higher price is qualitatively justified or he is ill informed.   True, there have been many instances following the free pricing policy where companies have priced their issues higher than the market price.   But these are errors of judgment, which a company soon comes to learn and learns to correct.   However, one important reason for the propensity of companies to price their shares unduly high may be attributed to their mistaken notion that the higher the price at which a company issues its Continue reading

Abey Francis

Diffusion of Innovation Theory

Diffusion of innovation theory was developed in the early 1950s by Everett Rogers. It seeks to explain the spread of new ideas through individuals and members of a social system. This theory is still widely used now to spread innovations and ideas from the scientific world to the political sphere. According to Rogers, the diffusion of innovation is the process by which an innovation is communicated through certain channels over time among the members of a social system. To understand that definition you must first understand some key terms. Innovation is used more generally here to mean an item, thought, or process that is new. Good examples of innovation would be automobiles, brain surgery, and a new kind of running shoe. It is important to realize that something can be an innovation in one place and have already been accepted in another. The other key term in the definition is Continue reading

Abey Francis

Income from Salary

DEFINITION According to [Sec 17 (1)] Salary includes                               (i)                         wages;                               (ii)                       any annuity or pension;                               (iii)                     any gratuity;                               (iv)                     any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages;                       Continue reading

Abey Francis

The Law of Diminishing Marginal Utility

The law of diminishing marginal utility was first developed by a German economist Hermann Heinrich Gossen. This law is also known as the first law of Gossen. The law of diminishing marginal utility states that the marginal utility derived from the consumption of every additional unit goes on diminishing, other thing remaining the same. The law of diminishing marginal utility is based on two important facts : Though human wants are unlimited, each single want is satiable. Commodities are not perfect substitute for each other. Therefore, as a consumer consumes more and more units of a commodity, intensity of his/her want for the commodity goes on falling and reaches a point where a consumer do not want any more units of the commodity. That is, when saturation point is reached marginal utility of a commodity becomes zero. Thus, as the amount of consumption of a commodity increases, marginal utility decreases. Continue reading

Abey Francis

Modeling Techniques in Management Science

Management science is the science for managing and involves decision making. It utilizes what is controllable, and tries to predict what is uncontrollable in order to archive a specific objective. Science is a continuous search; it is a continuing generation of theories, models, concepts, and categories. Management science uses analytical methods to solve problems in areas such as production and operations, inventory management, and scheduling. Typical management science approach is to build a model for the problem being studied, such a model is often a mathematical model. Practical problems are often unstructured and lack clarification in definition of problem which makes mathematical modeling a challenge. Therefore modeling of a problem is important phase in problem solving technique. Once model is built, algorithms are used to solve problem. Various techniques are devised to model problem and solve it for possible solutions. Linear programming is one of the widely used modeling techniques. Continue reading

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Capital Budgeting- Definition, Nature and Procedure

Meaning of Capital Budgeting Capital expenditure budget or capital budgeting is a process of making decisions regarding investments in fixed assets which are not meant for sale such as land, building, machinery or furniture. The word investment refers to the expenditure which is required to be made in connection with the acquisition and the development of long-term facilities including fixed assets. It refers to process by which management selects those investment proposals which are worthwhile for investing available funds. For this purpose, management is to decide whether or not to acquire, or add to or replace fixed assets in the light of overall objectives of the firm. What is capital expenditure, is a very difficult question to answer. The terms capital expenditure are associated with accounting. Normally capital expenditure is one which is intended to benefit future period i.e., in more than one year as opposed to revenue expenditure, the Continue reading

Abey Francis