Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Kaizen – Understanding the Japanese Business Philosophy of Continuous Improvement

Operations Management

Role of Leaders in Shaping Organizational Culture

Management Principles

Option Trading in Shares and Currency Options

Option Trading in Shares and Stocks When an option contract is entered into with an option to buy or sell shares or stocks, it is known as ‘share option’. Share option transactions are generally index-based. All calculations are based on the change in index value. For example, the present value of the index is Rs.300 and the strike price or exercise price is Rs.350. So long as the index remains below 350, the option holder will not exercise his option since he will be incurring losses. Now, the loss will be limited to the premium paid at the rate of Rs. 10/- per point. As the spot price increases beyond the strike price level, exercise of the option becomes profitable. Suppose the spot rate reaches 360, option may be exercised. The option holder gets a profit of Rs. 100 (10 points x 10). However, his net position will be Rs. Continue reading

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SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003

The SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003 enable SEBI to investigate into cases of market manipulation and fraudulent and unfair trade practices. The regulations specifically prohibit market manipulation, misleading statements to induce sale or purchase of securities, unfair trade practices relating to securities. SEBI can conduct investigation, suo moto or upon information received by it, by an investigating officer in respect of conduct and affairs of any person dealing, buying/selling/dealing in securities. Based on the report of the investigating officer, SEBI can initiate action for suspension or cancellation of registration of an intermediary. The term “fraud” has been defined by Regulation 2(1)(c). Fraud includes any act, expression, omission or concealment committed whether in a deceitful manner or not by a person or by any other person or his agent while dealing in securities in order to induce another person with his Continue reading

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Regional Economic Integration

Regional Economic Integration means agreements between groups of countries in a geographic region to reduce and ultimately remove tariff and non-tariff barriers for the free flow of goods, services and factors of production between each other. GATT and WTO are the biggest association of more than 140 member countries, which strive to reduce the barriers. However, more than regional, WTO has a global perspective. By entering into regional agreements, groups of countries aim to reduce trade barriers more rapidly than can be achieved under WTO. While there have been decreases in the global barriers to trade and investment, the greatest progress had been made on a regional basis. There are many examples in the current popular push on the European Union (EU) and the effects the EU have on a particular business or industry that illustrates this point. Perhaps the best example of the benefits of economic integration and political Continue reading

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Socially Responsible Strategies

A question of central interest here is, how can corporations formulate socially responsible strategies? How can companies assure that corporate domain choice strategies and competitive strategies are responsive to social needs and do not harm the public interest? There are two basic approaches to dealing with these questions. First is to evaluate the social merits of each corporate and business strategy selected based on financial, technological, and market criteria. For each strategy, one could ask these questions: What social good does the strategy contribute? Does the strategy create any public risks or harm? Does the strategy harm the interests of our stakeholders? How does the strategy affect public image and goodwill? Will the strategy lead us into social controversies? The answers to these questions can aid in modifying strategies to fit reasonable demands. The idea is not to abandon strategies that have even the slightest negative consequences, but to consider Continue reading

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Definition and Features of Promissory Note

Promissory Note, in the law of negotiable instruments, written instrument containing an unconditional promise by a party, called the maker, who signs the instrument, to pay to another, called the payee, a definite sum of money either on demand or at a specified or ascertainable future date. The note may be made payable to the bearer, to a party named in the note, or to the order of the party named in the note. A promissory note differs from an IOU(An IOU (abbreviated from the phrase “I owe you“) is usually an informal document acknowledging debt) in that the former is a promise to pay and the latter is a mere acknowledgement of a debt. A promissory note is negotiable by endorsement if it is specifically made payable to the order of a person. According to section 4 of the Negotiable Instruments Act, 1881, a promissory note means “Promissory Note Continue reading

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Purposes of Cost Allocation

Cost allocation is the assigning of a common cost to several cost objects. For example, a company might allocate or assign the cost of an expensive computer system to the three main areas of the company that use the system. A company with only one electric meter might allocate the electricity bill to several departments in the company. Cost allocation implies that the assigning of the cost is somewhat arbitrary. Some people describe the allocation as the spreading of cost, because of the arbitrary nature of the cost allocation. Efforts have been made over the years to improve the bases for cost allocation. In manufacturing, the overhead allocations have moved from plant-wide rates to departmental rates, from direct labor hours to machine hours to activity based costing. The goal is to allocate or assign the costs based on the root causes of the common costs instead of merely spreading the Continue reading

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