SWOT Analysis: Strengths, Weaknesses, Opportunities and Threats

SWOT which stands for an abbreviation of Strengths, Weaknesses, Opportunities and Threats; is an analysis that defined as method to examine organization’s internal factors dealing with strengths and weaknesses, and its environmental opportunities and also the threats. SWOT analysis usually use in the preliminary phase of decision making as a general tool which it designed for being antecedent to strategic planning in different case and applications. SWOT Analysis can be used as a model, process, technique or framework to provide information about those factors strengths, of an organization by having many applications with possibility of being used in all the levels of the organization. SWOT analysis is a part of the strategic planning process. Companies have some internal and external forces in the business environment. As a first step of a strategic planning system, the strategic factors that are related with the potential of the company, should be identified and Continue reading

Importance of Good Communication in Business

In the modern corporate world today, effective communication is vital in any type of businesses, because it builds a close interaction among each of the members from all the departments in an organization. It also can determine whether a business success or a business failure of the organization will be. Moreover, it does help the relationships to develop along good lines, and ensure that arguments and disagreements are kept to a minimum. For example, good communication skill is very important in partnership, so that the partners can avoid the problems of misunderstanding and petty quarrels. We can measure the importance of communication skills in business sector when we take a look at the job advertisement. Candidates with good communication skills seemed to be the single most repeated phrase in the job qualification requirement. And, the ability of good communication is also the most basic of job skills. There is almost Continue reading

Clearing and Settlement of Futures and Options

National Securities Clearing Corporation Limited (NSCCL) undertakes clearing and settlement of all trades executed on the futures and options (F&O) segment of the NSE. It also acts as legal counterparty to all trades on the F&O segment and guarantees their financial settlement. Clearing Entities Clearing and settlement activities in the F&O segment are undertaken by NSCCL with the help of the following entities: Clearing members: In the F&O segment, some members, called self clearing members, clear and settle their trades executed by them only either on their own account or on account of their clients. Some others called trading member–cum–clearing member, clear and settle their own trades as well as trades of other trading members (TMs). Besides, there is a special category of members, called professional clearing members (PCM) who clear and settle trades executed by TMs. The members clearing their own trades and trades of others, and the PCMs Continue reading

Strategies of Options Contracts

Options are of two types – calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date. We look here at some Strategies of options contracts. We refer to single stock options here. However since the index is nothing but a security whose price or level is a weighted average of securities constituting the index, all strategies that can be implemented using stock futures can also be implemented using index options. Hedging: Have underlying buy puts Speculation: Bullish security, buy calls or sell puts Speculation: Bearish security, sell calls or buy puts Hedging: Have underlying buy puts Owners of Continue reading

Strategies of Futures Contracts

A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Futures contracts are special types of forward contracts in the sense that the former are standardized exchange-traded contracts. Futures  Trading  Strategies We look here at some strategies of futures contracts. We refer to single stock futures. However since the index is nothing but a security whose price or level is a weighted average of securities constituting an index, all strategies that can be implemented using stock futures can also be implemented using index futures. Hedging: Long security, sell futures Speculation: Bullish security, buy futures Speculation: Bearish security, sell futures Arbitrage: Overpriced futures: buy spot, sell futures Arbitrage: Under-priced futures: buy futures, sell spot 1. Hedging: Long security, sell futures Futures can be used as an effective risk–management tool. Take the case of an investor Continue reading

Income Tax Assessment Procedure

Ascertaining total income is one major task of the procedure involved in levying tax on an assessee.   The task of assessing the income returned and determination of tax liability is called ‘assessment’.   The term ’assessment’ has been used in the Income-tax Act meaning differently contexts.   In certain situations, it refers to computation of income, sometimes to the determination of tax payable and in some cases to the whole procedure laid down in the Act of imposing tax liability on assessee. Assessment of income relating to one Financial Year (FY) starts in the succeeding financial year, which is called Assesment Year (AY). Income tax assessment procedure begins when an assessee files his return of income to the income tax department. Filing of return [Sec 139 (1)] A person has to file return of income in the prescribed form within the specified time limit if his total income exceeds Continue reading

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