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

Balance of Payments (BoP) Accounting

Balance of payments (BoPs) is systematic statement that systematically  summarizes, for a specified period of time, the monetary transactions of an  economy with the rest of the world. Put in simple words, the balance of  payments of a country is a systematic record of all transactions between the  ‘residents’ of a country and the rest of the world. Three main elements of actual process of measuring international  economic activity are: Identifying what is/is not an international economic transaction, Understanding how the flow of goods, services, assets, money create  debits and credits, and Understanding the bookkeeping procedures for BoP accounting. Each transaction is recorded in accordance with the principles of  double-entry  book keeping. That is  every transaction is recorded based on accounting principle. One of these  entries is a credit and the other entry is debit. In principle, the sum of all  credit entries is identical to the sum of all Continue reading

Abey Francis

What is Trading on Equity?

The phrase trading on equity is a financial jargon which indicates the utilization of non-equity sources of funds in the capital structure of an enterprise. At a high debt-equity ratio, a firm may not be able to borrow funds at a cheaper rate of interest it may not able to borrow funds at all. This is so because creditors lose confidence in the company which has a high debt-equity ratio. How can creditors have confidence in the company which has only creditors and no equity stockholders? The company will, therefore, have to strive hard to regain a reasonable debt-equity ratio so that the expectations of the market may be satisfied. In fact, equity financing by way of a public sale of stock offers real value of a firm. Traditionally, it has served as a spearhead for expansion of resources and productive capacity involving risk. Merwin Waterman states that the term Continue reading

Abey Francis

Foreign Market Entry Modes – Five Modes of Foreign Market Entry

Changes in the internal and external business environment have meant that more and more firms are expanding their operations across country borders. External factors such as: the removal of trade barriers, free trade agreements between countries, and an emerging middle class has made the idea of going global more attractive to organisations across the world. Internal factors such as: increasing profits, increasing market share and becoming a global brand are more drivers for organisations to globalize. Whilst there are a lot of drivers of internationalization, and hence potential advantages to internationalize. Types of Foreign Market Entry Modes An organisation has a number of different entry modes to choose from when it internationalizes its operations.  All organisations will have different reasons for going global, which will have an influence on which entry mode is best suited to them. An organisation will need to determine their desired level of commitment, flexibility, control, Continue reading

Abey Francis

What is a Circular Economy?

The term circular economy (CE) has both a linguistic and descriptive meaning. Linguistically it is an antonym of a linear economy. A linear economy is one defined as converting natural resources into waste, via production. Such production of waste leads to the deterioration of the environment in two ways: by the removal of natural capital from the environment (through mining/unsustainable harvesting) and by the reduction of the value of natural capital caused by pollution from waste. And the word circular has a second, inferred, descriptive meaning, which relates to the concept of the cycle. There are two cycles of particular importance here: the biogeochemical cycles and the idea of recycling of products. By circular, an economy is envisaged as having no net effect on the environment; rather it restores any damage done in resource acquisition while ensuring little waste is generated throughout the production process and in the life history Continue reading

Abey Francis

Tax Accounting of Different Business Structures 

Taxation is a source of government revenue collected through levying or imposing charges on corporate organizations and citizens of the country. The government may use taxation to encourage or discourage the country’s economic decisions. Taxation has several principles that guide the government when formulating its tax regime. The first principle is the principle of broad-basing, which requires that taxes are spread across every sector of the country’s economy and among all citizens. The principle of adequacy requires that taxes collected should be enough to cater for the provision of public goods and services. The principle of equity states that taxes should be distributed equitably to individuals and corporate companies, which have the same economic state. Last but not the least is the principle of neutrality, which states that no sector of the economy or individuals should be given an undue advantage over another. Taxation and Accounting of Partnership Companies Partnership Continue reading

Abey Francis

Effects of Inflation on Different Groups of Society

It is true that in times of general rise in the price level, if all groups of prices, such as agricultural prices, industrial prices, prices of minerals, wages, rent and profit rise in the same direction and by the same extent, there will be no net effect on any section of people in the community. For example, if the prices of goods and services, which a worker buys rises by 50 per cent and if the wage of the worker also rises by 50 per cent then there is no change in the real income of the worker, ie., his standard of living will remain constant. However, in practice, all prices do not move in same direction and by same percentage. Hence, some classes of people in the community are affected by inflation more favorably than others. This is explained as follows: Producing Classes: All producers, traders and speculators gain Continue reading

Abey Francis