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

Types of Merger

An extensive appraisal of each merger scheme is done to patternise the causes of mergers. These hypothesized causes (motives) as defined in the mergers schemes and explanatory statement framed by the companies at the time of mergers can be conveniently categorized based on the type of merger. The possible causes of different type of merger schemes are as follows: Horizontal merger: These involve mergers of two business companies operating and competing in the same kind of activity. They seek to consolidate operations of both companies. These are generally undertaken to: Achieve optimum size Improve profitability Carve out greater market share Reduce its administrative and overhead costs. Vertical merger: These are mergers between firms in different stages of industrial production in which a buyer and seller relationship exists. Vertical merger are an integration undertaken either forward to come close to customers or backwards to come close to raw materials suppliers. These Continue reading

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Industrial Finance Corporation of India (IFCI)

At the same time raw industrial units were to be set up for industrializing the country. Government of India came forward to set up the Industrial Finance Corporation of India (IFCI) in July 1948 under a Special Act. The Industrial Development Bank of India, scheduled banks, insurance companies, investment trusts and co-operative banks are the shareholders of IFCI. The Government of India has guaranteed the repayment of capital and the payment of a minimum annual dividend. Since July I, 1993, the corporation has been converted into a company and it has been given the status of a Ltd. Company with the name Industrial Finance Corporations of India Ltd. IFCI has got itself registered with Companies Act, 1956. Before July I, 1993, general public was not permitted to hold shares of IFCI, only Government of India, RBI, Scheduled Banks, Insurance Companies and Co-operative Societies were holding the shares of IFCI. Management Continue reading

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Sales tax provisions relevant for leasing

The major sales tax provisions relevant for leasing are as follows: The lessor is not entitled for the concessional rate of central sales tax because the asset purchased for leasing is meant neither for resale nor for use in manufacture. (It may be noted that if a firm buys an asset for resale or for use in manufacture it is entitled for the confessional rate of sales tax). The 46th Amendment Act has brought lease transitions under the purview of ‘sale’ and has empowered the central and state government to levy sales tax on lease transactions. While the Central Sales Tax Act has yet to be amended in this respect, several state governments have amended their sales tax laws to impose sales tax on lease transactions. a. Levy of Sales Tax: Sales Tax is leviable when goods are sold. Thus there must be ” Goods and there must be a Continue reading

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Credit Linked Notes (CLN)

Meaning of Credit Linked Notes Certain investors are prevented from entering into derivatives contracts, either by law or by internal investment policies. Credit Linked Notes (CLNs) allow such investors to derive some of the benefits of credit derivatives. Credit Linked Notes (CLNs) are regular debt obligations with an embedded credit derivative. They can be issued either directly by a corporation or bank or by highly rated special purpose vehicles created by dealers. The coupon payments made by a CLN effectively transfer the cash flow of a credit derivatives contract to individual investors. Credit Linked Notes are best understood by a simple example: ABC Investments would like to take on the risk associated with the debt of XYZ Corp., but all of XYZ’s debt is composed of bank loans and ABC Investments cannot simply sell protection in a Credit Default Swap (CDS) because its investment policy prevents it from entering into Continue reading

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Merchant Rate and Exchange Margin in Foreign Exchange Markets

Merchant Rate in Foreign Exchange Markets The foreign exchange dealing of a bank with its customer is known as  merchant business and the exchange rate at which the transaction takes place is the merchant rate. The merchant business in which the contract with the customer to buy or sell foreign exchange is agreed to and executed on the same day is known as ready transaction or cash transaction. As in the case of interbank transactions a value next day contract is deliverable on the next business day and a  spot contract is deliverable on the second succeeding business day following the date of the contract. Most of the transactions with customers are on ready basis. In practice, the term  ready and  spot are used synonymously to refer to transactions concluded and executed on the same day. Basis for Merchant Rates When the bank buys foreign exchange from the customer, it Continue reading

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7 Characteristics of an Entrepreneur

Entrepreneurs have in common some characteristics and skills, but anywhere there is a wide range of individuality among them. Some entrepreneurs receive formal training and skill development, while others have a natural flair for it, still others break every rule or use very unusual approaches, but still succeed. There is no recipe for becoming a successful entrepreneur, but there are certain characteristics that are associated with entrepreneurial success, here are described several important ones: Aptitude: Most people have a wide range of aptitudes-natural talents, tendencies, or capacities. Entrepreneurs can apply their aptitudes to their business ventures. Every potential entrepreneur has to analyze his aptitudes and talents, which are an important part of his starting background. Then, with practice, hard work, and education, those basic aptitudes and talents can turn the potential entrepreneur into a real business man. Risk tolerance: Risk can be defined as the possibility of failure or adverse Continue reading

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