Skip to main content


Showing posts from May, 2020

How Dubai become developed and so rich

How Dubai become rich and developed     Abu-Dhabi  become developed because it has oil to trade but Dubai had no oil to sell and become rich. "Dubai was not found on oil, it was found on trade".  Lifelong Trimmer- Runtime 50 minutes, 20 Length Settings | Cordless Beard Trimmer| Trimmer with Charging Indicator with 1 Year Warranty (LLPCM05, Black) Amazon's Choice for "lifelong trimmer" 60% off    Dubai is a global destination, global hub and most travelled city in the world. 20 years ago, Dubai had nothing. There was only sand there. Dubai had neither it's own food nor it's water or they had neither gold nor mineral. Let's start with their prime minister of UAE, Sheikh Mohammad Bin Rashid Al Maktoum, he is a great visionary leader. Their general public plans their weekend Saturday, Sunday and he plans for 10 years for the development of Dubai. Everyone thinks that money comes due to oil in Dubai but the revenue volume of oil in Dubai is

Advantages and Disadvantages of mobile technology

Advantages of Mobile Technology    Mobile technology provides the following advantages to the users: Anytime, anywhere connectivity. Convenience and freedom to carry anywhere. Possibility of doing business during travel. Transfer of data along with transfer of voice. Digital photography in new models Internet access at any time. Disadvantages of Mobile Technology Mobile telephony has following disadvantages Compared with fixed telephony it is expensive to use especially from mobile to landline. Wide spread use of cell phones has led to increase concerns about possible health hazards particularly brain disease as the antennas of these phones lie along the head and the radio frequency waves have both electrical and magnetic components. Use of mobile phones during driving incresed the chances of accidents. Wider use of mobile phones is problem for environment.

Difference between oral and written communication

The difference between oral and written communication is discussed as follows: 1. Static or Dynamic Form of transfer of message. Writing is fairly static form of transfer of message whereas oral communication is a dynamic transfer of information. The written message is transferred once for all whereas in oral communication, the speaker has more ability to engage the audience psychologically. 2. Degree of Precision. The written communication is more precise as words are chosen with great deliberation and thought and the message is designed in logical sequence with sophistication and scholarship. On the other hand, oral communication is usually not precise as it is delivered spontaneously. Speeches can be precise, but that precision comes only with great preperation and compression. 3. Speed and spontaneity. The written communication lacks speed and spontaneity whereas the oral communication is speedy and spontaneous. In written communication, first message is designed after

Advantages of Verbal Communication

Verbal communication offers the following advantages: 1. Versatility of the message. Verbal communication enables human being to express different types of experiences and things. Therefore it is versatile in nature. Different words are available for different types of experiences. On the other hand, non verbal communication lacks the elements of versatility. 2. Speed. With verbal communication, message can be sent in speedy way. As one feels to convey the idea or emotions, one can express it immediately through spoken or written words. 3. Free from ambiguity. Compared with non-verbal communication, verbal communication is free from ambiguity. Usually specific word has specific meaning which is agreed by different people. On the other hand non-verbal communication clues are lacking universal understanding. Different gestures and postures are understood differently in different countries and cultures. 4. Immediate clarification. Sometimes it happens that the  message conveyed i

Facsimile(FAX) and its important features

A facsimile or fax machine is one of the most useful media for transmission of written especially visual material such as diagrams, copies etc. Fax machines are connected with telephone both at transmitting and receiving end. In fax a document is fed in the transmitting end which is converted into electrical signals. These signals are transmitted through telephone lines to another fax which reconverts these signals into printed out hand-copy. Then the receiving fax machine sends a message confirming the receipt of entire message.     There are several brands of faxes, with distinctive features. Some of the features commonly possessed by fax machines are : (a) Remote Activation         The user can activate his machine via his cordless or even a parallel phone line. This telephone works even during a power failure. (b) Memory         The fax machine can store the message in memory if there is no paper for printing the message. (c) Transmission speed         If the sp

Elements of Communication Process

Communication process is concerned with sharing and understanding of information.       It consists of a few elements explained below :- 1. Sender       The communication process starts with the sender, the person or group who wants to transmit the message to another person or group. He is not interested in the words, date or symbols themselves but uses them for conveying meaning to others. 2. Message     The physical form of the idea of information conveyed which can be understood through receiver's sensory receptors  (hearing, seeing, smelling,  feeling, touching). Messages are not the meaning but indicative of meanings.  Meaning lies in the receiver's mind not in the message. For example, a manager reminds a worker about a deadline with an intention to cooperate but the worker interprets it as an indicator of annoyance. 3. Encoding       Encoding is putting the meaning of the message into appropriate words, symbols, gestures and other form of expression for the pu

Meaning and Definition of Communication

The English word 'communication' has been derived from the latin word 'communis',which means common, consequently it implies that the communication is common understanding through communion of minds and hearts. This common understanding results not only through transfer of information and idea but also from transmission of the attitude.       Communication is complete when the receiver understands in the same sense and spirit that the communicator intends to convey.       "Communication is an exchange of facts, ideas, opinions or emotions by two or more persons."                       ¬ W.H. Norman & Summer       Communication is defined as "the process of passing information and understanding from one person to another. It is essentially a bridge of meaning between the people. By using the bridge a person can safely crossed the river of misunderstanding."                                                                                 ¬ Ke

Merger and acquisition policies in India

Combination movement in India has lagged far behind the one in western countries. Indeed, there has hardly been any movement in their direction for there has not been any evolutionary development as in more industrialised countries, but only a merger here or an amalgamation there according to the exigencies of circumstances. Absence of competition, managing agency system, India dualistic outlook, want of adequate impetus, larger member of units etc. are the reason for the slow growth of combination in India. The policy of the government of India in this regard is to encourage growth of combination in some favourable cases as well as to discourage or prevent formation of combination in other cases. Evils of monopoly is one of the disadvantages of combination. Government in this regard always tries to enact some special legislation to control monopoly prices and profits and regulate evils of combination movement. The aim of consumer legislation it is to protect consumers againsts unfair

Disadvantages of Holding Companies

Holding companies do not free from some limitation. Some limitations or disadvantages of holding companies are given below: Monopoly: Holding company may develop into a monopoly to swindle excessive profits by manipulated control over the market. The questions of economics remains in the background while desire for monopoly power colours its policies. There is possibilities of social interest being ignored by the holding companie's craze for dominance. No corresponding liability:  Holding company has concentrated power of control over subsidiaries. But there is no corresponding liability or responsibility pinpointed on it for achieving any precise operating results or profits. Control without accountability for results may prove detrimental to the interests of the group. Keep away from risks:  Holding company may try to shirk its responsibility and to keep away from the risks by selling its holding in the subsidiaries at the critical times. Keen interest in the affairs: Sinc

Advantages of Holding Companies

Following advantages are associated with holding companies : Easy: Combining the companies under holding company is comparitively easier. There is no need for elaborate agreement or unanimous consent of the firms concerned. Acquiring shares by a company in other companies to the extent of more than 50% of their aggregate share capital makes it a holding company. Minimum financial ang valuation difficulties: Problem of determining the purchase prise of the undertaking will not crop up in respect of holding company susbsidiary relationship. According to Beacham advantage of the holding company is the financial and valuation of difficulties are minimised and hence amalgamations in this form are much easier to arrange. Distinct Entity: Since each subsidiary company retains its distinct entity, it is possible for the holding company to drive the advantage of good will of any of the subsidiaries and also secure economies of scale. Maintenance of secrecy: Maintenance of secrecy is an

Call and Short Notice Money

Call money refers to a money given for a very short-period. It may be taken for a day or overnight but not exceeding seven days in any circumstances. Surplus funds of the commercial banks and other institutions are usually given as call money. Banks borrow call funds for a short period to meet the Cash Reserve Ratio (CCR) requirements and repay back once the requirements have been met.      Sometimes, individuals of very high financial standing may borrow money for a very short period to meet their business financial needs. The rates of interest is very low on call funds. The call money loans may be given for the purpose of dealing in the bullion market and stock exchanges.       Another variation of call money is notice money which can be for a period upto 14 days.       'Money at call and Short Notice' appears on the assets side of a bank balance sheet and represents temporary loans to bill brokers, stock brokers and other banks. If the loan is given for one day, it is ca

Treasury Bills (TBS)

The treasury bill, on the other hand, is a short-term government security, usually of the duration of 91 days, sold by the central bank on behalf of the government. There is no fixed rate of interest payable on the treasury bills. These are sold by the central bank on basis of competitive bidding. The treasury bills are allocated to the person who is satisfied with the lowest rate of interest on the security. As treasury Bills are government papers having no risk, these are good papers for commercial Banks to invest short-term funds.       Treasury bills are highly secured and liquid because of guarantee of repayment assured by the RBI who is always willing to purchase or discount them. Treasury bills are government sector instruments and do not require any grading or further endorsement or acceptance.       Types of Treasury Bills. Treasury Bill's are basically of two types :           (i) Ordinary/ Regular           (ii) Adhoc          (i) Ordinary/Regular TB s are issued t

What is Lateral or Allied Combinations

It is the expansion of firms in the direction of combining with firms dealing in different or but allied activities. Lateral combination take place when firms manufacturing different types of products, but allied in some ways come together. In other words, where different sorts of articles, but none the less allied, are produce by one organisation lateral integration takes place. That is to say, instead of a number of different firms making different articles after the analytical stage has been reached, they all come together and produce all these articles as one concern.     Example : Pig iron is used in so many ways and so many processes of fabricating iron and steel products after the analytical stage smelting, so that, one firm may make needless, another scissors, third pins and the fourth fish tackles and so on. When they come together, smelting is done at one place and all these articles and many others allied to them are manufactured by the same firm. Likewise, after leather

Definition of Commercial Bill's

 Commercials Bill or the Bill's of exchange, popularly known as bill is a written instrument containing an unconditional order. The bill is signed by the drawer, directing a certain person to pay a certain sum of money only to, or order of a certain person, or to the bearer of the instrument at a fixed time in future or on demand. Once the buyer signifies his acceptance on the bill itself it becomes a legal document. Bill of exchange is a very important document in commercial transactions. When the buyer is unable to make the payment immediately, the seller may draw a bill upon him payable after a certain period. The buyer accepts the bill and returns to the seller. The seller may either retain the bill till the due date or get it discounted from some banker and get immediate cash. Usually such bills are discounted or rediscounted by commercial banks to lend credit to the bill-hilders or to borrow from the central bank.       Indian bill market is an underdeveloped one. A well or

Structure of Money Market

The structure of money market can be studied as follows : The components or sub-market of Money market     The money market is not homogeneous in character. This is a loosely organised institution with a number of divisions and sub-divisions. Each particular division or sub-divisions deals with a particular type of credit operation. All the sub-markets deal in short term credit. The following are the important constituents or sectors of money market. 1. Call Money Market     Call money market refers to the market for short period. Bill brokers and dealers in stock exchange usually borrow money at call from the commercial banks. These loans are given for a very short period not exceeding seven days under any circumstances, but more often from day-to-day or for overnight i.e. 24 hours. There is no demand of collateral securities against call money. They possess high liquidity, the borrowers are required to pay the loan as and when asked for, i.e. at a very short notice.

Scope of Production Management

Production function of management involves a wide range of activities from the palnt location to the packing to products to be distributed by the marketing department of the enterprise. Production management includes the following operations :       (i) Design of Products : It is the top management which determines the product to be produced by the firm. But the designing of the product is the responsibility of the production manager. Product designing deals with form and function. The form design deals with product, shape and appearance whereas the functions design deals with its working.        (ii) Design of production system :  Production system is the framework within which the conversion of inputs into output occurs.      There are three basic kinds of production system, namely : Process production, Job production and  Intermitted production.       The choice of a production system will depend upon the type of product to be produced and the scale of production carrie

Difference between Capital market and Money market

          The capital market should be distinguished from money market. The capital market is the market for long-term funds. On the other hand money market is primarily the market for short-term funds. However, the two markets are closely related as the same institution many a times deals in both types of funds, i.e. short-term as well as long-term.            The major points of distinction between the two markets are as under:     

Types of financial institutions

Financial institutions can be classified into two categories: A. Banking Institutions B. Non-Banking Institutions A. Banking Institutions  Indian banking industry is subject to the control of the central Bank ( i.e. Reserve bank of India). The RBI as the apec institution organises, runs, supervises, regulates and develops the monetary system and the financial system of the country. The main legislation governing commercial banks in India is the Banking Regulations Act, 1949. The Indian Banking institutions can be broadly classified into two categories: 1.Organised Sector 2. Unorganised Sector 1. Organised Sector The organised banking sector consists of commercial banks, cooperative banks and the regional rural banks. (a) Commercial Banks. The commercial banks may be scheduled banks or non-banks. At present only one bank is a non-scheduled bank. All other banks are scheduled banks. The commercial banks consist of 27 public sector banks, private sector banks and foreign banks

Difference between Horizontal Combination and Vertical Combination

Difference between Horizontal and vertical combination can be discussed under the following points : (i) Competition in the raw material market: In case of horizontal combination, there is a close competition  for the raw materials among the business units.             But, in case of vertical combination, there is no competitions in the raw materials market. It assures greater security with regard to the supply and cost or raw materials as well as disposal of intermediate products. It has self sufficient units as far as supply of raw material is concerned. (ii) Specialisation: In case of horizontal combination every member produces the same final product. There is no specialisation as such. Every business unit is equally developed. They have to depend on outside firms.       But, in case of vertical combination, every member is to devotes to particular section and specialises in that production. It can produce bettrer articles at cheaper prices. (iii) Competition in marketing

Limitations of vertical combination

Limitations of vertical combination : Vertical combinations refers from the following limitations. (i) Difficult of large scale production : Under vertical business combination, no combining units can enlarge its size of activity. Because every combining units is to produce as per requirement of another combining unit which will use its output as inputs. So, large scale economics can not be gained by the vertical business business combination. (ii) Inelasticity: Large integrated units tend to become inelastic and they may it almost impossible to adopt to the changes in trends of production and marketing. It is said that once an organisation through integration is turned up to produce a given article, it is hard and burdensome to switch over to new lines and models of production. (iii) Cut throt cempetition: Under vertical business combination only complentery units are combined. So, inspite of combination, competition can prevail in the market amongst substitute business units.