Importance of Work-Life Flexibility

Human Resource Management

Work Life Balance and Wellness in Organizations

Human Resource Management

What is Work Life Flexibility?

Modern Management Concepts

The Relevance of Stakeholder Management in International Business Context

International Business

Why Business Models Matter in Business?

Modern Management Concepts

Important Functions of Money

Money is a critical component of any modern economy, serving as a medium of exchange, a store of value, and a unit of account. It is used by individuals, businesses, and governments to facilitate transactions and to manage financial resources. In this essay, we will explore the functions of money, and how it helps to facilitate economic activity. Medium of Exchange: One of the most important functions of money is its role as a medium of exchange. In a barter system, goods and services are exchanged directly for other goods and services, with no universal medium of exchange. However, money provides a convenient and efficient way to facilitate transactions by allowing buyers and sellers to exchange goods and services for a universally accepted form of payment. This reduces the need for a double coincidence of wants, where a buyer must have something the seller wants in order to complete a Continue reading

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Foreign Institutional Investors (FII’s) and Indian economy

Introduction to Foreign Institutional Investors (FII’s) Since 1990-91, the Government of India embarked on liberalization and economic reforms with a view of bringing about rapid and substantial economic growth and move towards globalization of the economy. As a part of the reforms process, the Government under its New Industrial Policy revamped its foreign investment policy recognizing the growing importance of foreign direct investment as an instrument of technology transfer, augmentation of foreign exchange reserves and globalization of the Indian economy. Simultaneously, the Government, for the first time, permitted portfolio investments from abroad by foreign institutional investors in the Indian capital market. The entry of FIIs seems to be a follow up of the recommendation of the Narsimhan Committee Report on Financial System. While recommending their entry, the Committee, however did not elaborate on the objectives of the suggested policy. The committee only suggested that the capital market should be gradually Continue reading

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An overview of Foreign Direct Investment (FDI) in India

About foreign direct investment. Foreign Direct Investment or FDI is the process whereby residents of one country (the source country) acquire ownership of assets for the purpose of controlling the production, distribution, and other activities of a firm in another country (the host country). The international monetary fund’s balance of payment manual defines FDI as an investment that is made to acquire a lasting interest in an enterprise operating in an economy other than that of the investor. The investors’ purpose being to have an effective voice in the management of the enterprise’. The united nations 1999 world investment report defines FDI as ‘an investment involving a long term relationship and reflecting a lasting interest and control of a resident entity in one economy (foreign direct investor or parent enterprise) in an enterprise resident in an economy other than that of the foreign direct investor ( FDI enterprise, affiliate enterprise Continue reading

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Rights Issue or Rights Offering

RIGHTS ISSUE Normally, whenever an existing company makes a fresh issue of equity capital or convertible debentures the existing shareholders or convertible debenture holders have the first right to subscribe to the issue in proportion to their existing holdings.   Only what is not subscribed to by the existing shareholders can be issued to the public.   Thus, an issue offered to the existing shareholders or convertible debenture holders as their right is known as rights issue, as opposed to an issue open to the public at large, in which case we call it a public issue.   An investor may exercise this right to subscribe to the offered issue, or he may sell the rights separately in the market.   The rights have a market value only when the issue is made below the market value of the security.   When this happens, as can be expected, the market Continue reading

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Bonus Issue of Shares – Meaning, Benefits and Motives

BONUS ISSUE OF SHARES When we invest the share capital in a business, we do so with the expectation of getting back not only our invested capital, but also a proportionate share of the surplus generated from operations, after all the other stakeholders have been paid their dues.   Thus, collectively the business owes its shareholders, their invested capital as well as the surplus generated from operations.   But in reality, while the business may pay us annual dividends, seldom is this surplus fully distributed away as dividends.   Thus, the surplus which is retained in the business is still owed to us.   This retained surplus is also reflected as retained earnings or reserves in the Balance sheet of a company.   Together, share capital and reserves are known as equity or the net worth of a company. Over a period of time, the retained earnings of a firm Continue reading

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Difference between debuntures and bonds

DEBENTURES A debenture represents the smallest unit of public lending to a company.   Like shares, they are represented in the form of a certificate.   The common face value for a debenture in India is Rs.100, and they are always issued at par.   Unlike an ordinary shareholder, a debenture holder assumes very little risk on his investment.   Unlike the uncertain stream o dividends, which a shareholder receives, a debenture holder receives a fixed stream of interest.   Payment of such interest is a legal obligation on the part of the company.   Further, in general, a debenture is required to be secured against the assets of the company.   Thus, a debenture is also a form of a secured loan.   Secured debenture implies that should a company default in its obligations towards debenture holders in the repayment of their interest and principal, in law, the charged Continue reading

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