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Showing posts from June, 2020

Service To The Wholesalers

A-SERVICE TO THE WHOLESALERS:  1- Retailers provide the wholesalers access to market their products to final consumers.  2- The wholesalers are relieved of selling goods in small quantity to the consumers.  3- Retailers supply valuable and reliable information to wholesalers about consumers demand for good and also the change occurring in the customer tastes fashion etc.  4- The retailers increase the sale of goods by keeping close contact with the customers. This helps the manufacturers to increase their production.

Retailer And Services OF Retailers

Retailer means to cut off a small price i.e. to sell in small quantities rather than in bulk. According to corrode. “The retailer is one who buys relatively in small quantities and sells them in still small quantities to the people”. Retailing thus includes all the activities related to the sale of goods and services for final consumption. SERVICES OF RETAILERS: In the chain of distribution of goods, the retailers are vital link between the wholesalers or manufacturers and the consumers.

Marketing - Functions of marketing ~ Importance Of Marketing

Different authors have defined marketing variously: • Marketing is the process by which goods and services move from the point of production to the point of consumption. • Marketing covers all business activities necessary to affect the transfer in the ownership of goods and services to provide for their distribution. • Marketing embraces all those activities that start with the production and ends up with the consumption. OLD CONCEPT OF MARKETING : The old concept of marketing was company – centered. According to which, the manufacturer or the seller produced the goods of his own choice. He would decide on design, color, shape, and functions of his own likes and preferences completely ignoring the desire of the customer. Selling was not a career job and enjoyed only secondary importance. They compromised on quality just to save cost. MODERN CONCEPT OF MARKETING : According to the modern concept of marketing Markets see new models innovations, inventions every year. Products are made

The Cooperative Society And Characteristics

The Cooperative Society is the group of persons or institutions that come into existence to offer various services to its members. One who cannot benefit in his individual capacity can gain as a member of cooperative society, since it purchases in bulk quantities resulting in economies a part of which is shifted to its members. Thus the members can buy at prices less than the market. CHARACTERISTICS: • The society is formed on mutual cooperation. • Every member is required to pay an annual fee. • Societies may be registered. • Members must pay service charges. • It is run on no profit, no loss gain basis. • The profit, if made, is distributed to the members. • Societies are formed in the fields of banking, housing, farming, fishing, credit, and others. • Registered societies must use the word “limited” following their names. ADVANTAGES OF COOPERATIVE SOCIETIES Following are the advantages of Cooperative Societies. CONTINUITY The cooperative societies enjoy a long and stable life. Lik

Winding Up Of A Company and Winding Up By The Court

WINDING UP OF A COMPANY When a company has fulfilled the purpose for which it was set up, when it canno1 pay its creditors or when its assets are sold to another company (merger,’ amalgamation, etc.) it must cease to exist. A company must undergo a legal’ process to end. Its legal existence. The legal process involves the realization of assets and discharge of its liabilities. In the even of winding up the business is closed down and the assets are disposed to pay to the creditors. Further the present and past member are called upon to contribute to the assets if the company. The members contributing to the assets are called contributories. A member can be called upon to contribute to the assets of the company only to the extent of unpaid amount on his shares. The amount realized by selling the assets and collected from the contributions is distributed in the following order:  1) Cost of winding up; 2) Preferential creditors;  3) Unsecured creditors;  4) Surplus, if an, among share

Distinguish Between Public And Private Limited Company

DISTINGUISH BETWEEN PUBLIC AND PRIVATE LIMITED COMPANY The main points of distinction are as follow: PRIVATE COMPANY 01)It requires registration and incorporation but has not to file (a) List of Directors (b) consent of directors with other documents to be filed as in public company. 2) It does not require any certificate to commence business and can start business soon after incorporation. 3) Can not issue a prospectus. 4) Must ordinarily use “Private Limited” as the last word in the name. 5) It is not required to hold the statutory meeting. 6) Annual accounts need not be circulated to members and need not be filed with the Registrar. 7) Accounts must be audited but not necessarily by an R.A. or C.A. 8) total membership must not exceed 50, minimum to 2. 9) Transfer of shares by a shareholder is restricted. PUBLIC COMPANY 1) It requires registration and in- corporation and has to file (a) List of Director and (b) consent of Directors with other documents necessarily to be filed for r

Joint Stock Company or Company And Characteristics of a Company

INTRODUCTION: The growing needs of modern large – scale business with advancement in science & technology have all needed a large amount of capital investment. Joint stock company form of business organization, which can fulfill it. When a business is established on a large scale the most suitable form of business organization is a joint stock company. The company is formed with the capital of shareholders. The capital of company is divided into equal small units, each unit being known as a share. The capital is subscribed when public buy these shares. Once the shares are sold they are not taken back until the final liquidation of the company. However, the shareholder can sell his shares to other person without affecting the share capital of the company. • According to the company law: “A voluntary association for profit with capital divisible into transferable shares with limited liability, having a corporate body common seal” • According to the company ordinance 1984: “A busines

Basic Legal Document Issued By A Company

BASIC LEGAL DOCUMENT ISSUED BY A COMPANY: There are three basic legal documents of a company. There are 1- Memorandum of Association. 2- Articles of Association and  3- Prospectus. (1) Memorandum of Association: Memorandum of Association is the basic document of Joint Stock Company. It is known as the charter of the company. It sets out the limits outside which the company cannot go. Its main purpose is to enable shareholder, creditors and all those who deal with the company to known what is it. Permitted range of enterprise. The main clause of the memorandum of a company limited by shares has been described in sections 16- 17 and 18 of the companies ordinance as under: 1. Name Clause: This clause state the name of the Company. A Company may select any name but it should not resemble the name of any other company it should also not contain the words like King, Queen Emperor government bodies U.N.O W.H.O etc the name should not be objection able In the opinion of the Gover

Difference between Dissolution of Partnership & Dissolution of Firm

Difference between Dissolution of Partnership & Dissolution of Firm   It must be kept in mind that the Dissolution of partnership and dissolution of the firms are two different things. The Dissolution of partnership never refers to the Dissolution of the firm. The dissolution of partnership means change in the composition or arrange of partners. The dissolution of the firm means end to the partnership business. DISSOLUTION OF PARTNERSHIP   Dissolution of partnership means modification in the partnership agreement with reference to relations among partners. In fact it is a reorganization of partnership under which composition of partners is changed. The change may result from increase or decrease in the number of partners. If Ahmed, Babar and Salim are partners in a firm and Salim deices to retire from it, dissolution of partnership will take place; now the firm will be reconstituted or reorganized between the two remaining partners, namely Ahmed and Babar. Conditions of Dissolu

Kinds Of Partners

KINDS OF PARTNERS  Active partner These are the partners who take active part in the business. They invest Capital and share in profit or loss. They have unlimited liability for debts of the firms in their profit sharing ratio. They have participation in decision – making and management. Sleeping Partner/ Silent/ Dormant partners These are the partners who invest capital but do not take active part in management. They have all rights and liabilities, which an active partner has. They also share in profit or loss. Secret Partners A secret partner is one who is not known to the public as a partner. He has capital in the business, enjoys profits and share losses. He may participate in management and decision – making. Nominal Partners He is the person who is not a real partner, but to get the general public he is declared as a partner. He has no investment in the business. He does not share in profit or loss and is not responsible for the debt of the business, but is responsible f

Partnership Agreement And Contents Of The Agreement

PARTNERSHIP AGREEMENT When two or more than two persons doing business combine with purpose to get profit, it is called partnership. To run a partnership an agreement among the partners is essential which is called partnership agreement. It may be written or oral. Partnership agreement is also known as articles of partnership & partnership deed. Contents of the Agreement 1. The name of firm & the location.  2. Nature of business.  3. The length of life of the partnership.  4. The names and addresses of partners.  5. The amount of investment by each partner.  6. The profit sharing ratio of the partners.  7. Name of the partner they are in management.  8. A provision of salaries & commission to partners.  9. Rights, duties and liabilities of partners.  10. A provision of dissolution of the partners.  11. Procedure of admission of a new partner.  12. A provision of the method of settlement of disputes.  13. Determination of rate of Interest on capital

Sole Ownership.Or Sole Proprietorship or The Sole Trader, Individual Entrepreneurship

Sole Ownership.Or Sole Proprietorship or the sole trader, Individual Entrepreneurship Or Single Proprietorship  INTRODUCTION: It is the oldest type of business ownership. When the mankind emerged out of the stone era started business in sole ownership. It provides for full ownership of profit, total control and rouses personal interest. It enjoys many benefits which other ownership cannot. Secrecy and ownership of full profit are main characteristics. However, it has some drawback like uncertain life, limited capital and difficulty in operations. DEFINITION: “It is type of business organization, which is owned by a single owner who is also referred to as sole proprietor” ADVANTAGES  1. OWNERSHIP OF ALL PROFIT :A sole proprietorship has only a single owner so there is no concept of distribution of profit and is wholly owned by him. On the other hand in company and partnership profits are distributed among owners. 2. EASE OF FORMATION: It is quite easy to form a business as sole

Partnership Or Business Partners

PARTNERSHIP  INTRODUCTION When to or more than two persons doing business combine with the purpose to get profit, it is called partnership. It is business ownership, which must require at least two partners. The maximum numbers of partners is 20 but in the case of banking it are only 10 to run a partnership an agreement between the partners is essentials which is called partnership agreement. After sole proprietorship it is most common form of business ownership in the business world. DEFINITION “Partnership is an association of two or more persons to carry on as co-owners a business for profit which needs an agreement”. ADVANTAGES   1. Tax saving The greatest advantage of partnership is tax saving. Since the profit is divided among partners the taxable income is reduced resultant in low income tax Moreover, Income of the partnership is not taxable and it’s become taxable when it is divided among the partners. So the tax is imposing only on the income of partners. 2. Combined J

Branches of commerce Or Branches of Business

Branches of commerce Or  Branches of  Business PROFESSION : According to Oxford Dictionary, It is a paid occupation, especially one that Requires advanced education and Training for example; architecture, doctor, teacher, singing, dancer etc.Chambers dictionary defines profession as follows: • “An employment not mechanicals and requiring some degree of learning” • “The collective body of persons engaged in any profession” Profession is also referred to as a calling, vocation or line to earn occupation Requiring advanced education and training & involving intellectual skills, as medicines, law engineering, teaching etc,  INDUSTRY: Industry has been defined as all those business and economic activities, which result in the creation of goods and services. For example in Pakistan there are 15 sugar miles so that 15 miles are the industry of sugar in Pakistan. Industry has been defined as follows: • Industry is any branch of manufacture and trade. • An industry is a commercial und

Qualities Of Good Businessman

QUALITIES OF GOOD BUSINESSMAN RISK ASSUMING: The business is full of risks of various types and they always stay a long, as the business exists. Risk is the chance of loss, fire death of a key employee, competition, inventions, various government policies etc. The businessman has to meet all these challenges so he has ability of risk assuming. GOAL – ORIENTED : Before starting a business he should set goals or objectives of his firm and continue establishing new and revising appraising the old ones so businessmen should be goal oriented. WELL – INFORMED: It is the century of information technology. The businessman should be well informed of the business conditions, competition, changing environment, national and international affairs, competent to foresee new expected risks and challenges. UNBELIEVER OF MYSTICAL FORCES: The businessman should have scientific approach to his business and not depend on leave things to chances, fate, luck etc. He should be able to determine his own co

Problems Of Business or Essential Of Business

Q) Write problems of business?  Q) write essential of business? or Q) explain factors must consider before starting business?  PROBLEMS OF BUSINESS / ESSENTIAL OF BUSINESS OR   FACTORS MUST CONSIDER B/F STARTING BUSINESS  INFRASTRUCTURE: Infrastructure provides a sound basis for all types of businesses. It includes basic facilities, like roads, power plaits, and transportation and communication systems. Whether it is a manufacturing concern or services organization, small or large business, all need infrastructure. FUTURE OF BUSINESS: This factor should be considered separately and specially. The factor of technology is especial consideration because it is fast changing and renders almost daily existing products outdated and obsolete. Today’s products get outdated tomorrow. NATURE OF BUSINESS: In starting a new business the businessman has to decide on the type and nature of business. The fields open to him are industrial, commercial, or service areas. He may choose manufactu

Functions Of Commerce Or Scope Of Commerce

FUNCTIONS / SCOPE OF COMMERCE The commerce has a wider scope. In case of home trade, the wholesalers, retailers and other middlemen connect the actual producers on one hand and the ultimate consumers on the other hand. Various closely related activities of commerce such as transport, warehousing, insurance, banking and finance in short all the functions of commerce are included in the scope of commerce. PRODUCTION: Business function starts with the planning for production, which is conversion of materials from one from to another. It requires the purchase of raw materials, machinery and equipment and hiring different classes of laborers. Production, which is a commercial activity, has four factors land, labor, capital and entrepreneurship without which it cannot take place. BANKING FINANCE : Banking and finance are part of commerce. By performing this service, commerce is able to finance the needs of the business firms. Through banking producers and middlemen get the needed funds. Ba

Importance Of Business ~ POC Notes

IMPORTANCE OF BUSINESS: PRODUCTION OF GOODS : It is the only business that gave rise to production on commercial basis. In the olden days man produced goods for his own consumption. He could not produce complex and sophisticated goods like cars, TV’s, airplanes, computers etc that are the fruits of business. DISTRIBUTING GOODS : Business activity is not confined to production. It includes distribution Goods and goes even beyond it in the form of guarantee or warranty, after sales services, and making available spare parts. SUCCESS OF INVENTION & INNOVATIONS: The success of inventions counts on business. New inventions are speedily coming up. Today’s invention gets obsolete tomorrow. Today’s luxury and comfortable life is the outcome of business. SUCCESS OF INDUSTRIAL REVOLUTION: The success of Industrial Revolution that began in the late seventeenth century can be attributed only to business. The main theme of the revolution was some new inventions in the textile sector.

Differentiate Between Commerce And Business

DIFFERENTIATE BETWEEN COMMERCE AND BUSINESS:  Business and commerce though two different words have identical meaning and concept and can be used alternatively. Americans prefer to use the term business. While britishers like to employ the word commerce, but in the same meaning. =============== Check this out Write down the different kinds of E-Banking =============== There are some other businesses terms also which are differently used by both the nations in the same context. BRITISHERS Company  Debenture  Limited  Shareholder AMERICANS Corporation  Bond  Incorporated  Stockholder For example. Some authors define commerce as follows: Commerce is concerned with the exchange of goods. It includes all those activities which are related to the transfer of goods from the place of production to the ultimate consumers. It is clear from the above definition that it can only be applied to the definition of marketing. As for profit, every adopted to earn livelihood ent

Commerce Or Principal Of Commerce Or POC

Commerce Or Principal Of Commerce Or POC INTRODUCTION In simple words commerce can be defined that it includes all those activities, which are concerned with providing of goods and services. In this way commerce with production of goods and services covers all activities of marketing and distribution including the services of retailer, wholesalers, other middleman, banking, transportation, warehousing, advertising, insurance, etc. =============== Check this out Write down the different kinds of E-Banking =============== DEFINITION Some of the authors have defined commerce in these words: 1. “commerce embraces all activities of various agencies which ensure a flow of goods and services between actual producers and the ultimate consumers”. 2. “A comprehensive term for all form of trade wholesale, retail, import, export  etc. All services which assist the carrying of trade, such as banking, insurances and transport etc”. 3. “Trading functions, together with warehousing, tr

Write down the different kinds of E-Banking

Write down the different kinds of E-Banking? INTERNET BANKING It is also referred to as online banking. The system uses internet for the purpose of transferring funds, confirming checking account balances, and paying utility bills. For using internet World Wide Web server is essential. MOBILE PHONE BANKING (M-BANKING)  It is also known as M-Banking. Banking transactions are made through SMS. TELEPHONE BANKING   When a bank allows its customer to make transactions over the telephone, it becomes telephone banking. The system uses an automated phone answering machine with voice recognition capability. ATM BANKING   It refers to Automated Teller Machine through which cash in the account can be drawn. These machines are usually installed outside the bank premises. It works around the clock. This machine accepts credit or debit, or ATM cards.

Advantages and Disadvantages of On-Line Banking

Write down the Advantages and Disadvantages of On-Line Banking? ADVANTAGES OF ONLINE BANKING 1. To draw money from bank you don’t have to line up in the long queues that cost time and labor.  2. Transactions are processed at a fast-speed.  3. For consumers and businessmen better and efficient financial management is facilitated.  4. Utility bills are promptly paid without queuing and late payment is avoided.  5. You can access your account round the clock over the week.  6. Bank charges are saved, as cheques that have cost are not used in e-banking. DISADVANTAGES OF ONLINE BANKING 1. Online transactions are exposed to frauds.  2. Online bank charges are liable to come down if competition among banks increases. This fact is a disadvantage to the bank.  3. If confidential information given to the bank is leaked out fraudulent transactions can be struck for which the consumer will be fully responsible.  4. Credit card frauds and identity thefts are common.  5. Customer i

What do you know about E-Banking?

What do you know about E-Banking? ELECTRONIC BANKING When banking transactions are struck electronically rather than face-to-face, it is referred to as Electronic Banking. It is just like e-commerce or e-marketing in which business transactions including buying and selling are performed electronically. The term electronic banking is wide in scope and includes PC banking, online banking, phone banking, mobile phone banking and ATM banking. List down the instruments and Equipments required in E-Banking?  1. Credit Cards.  2. Credit Card Machines  3. Debit Card.  4. Phone / Mobile Phone  5. PC ( Personal Computer )  6. Internet.  7. ATM Card.  8. ATM Machine.

List the control devices of Exchange Control

List the control devices of Exchange Control? The following devices are used in controlling foreign exchange. 1- EXCHANGE PEGGING As a result of inflation the currency loses its purchasing power. Faced by such a situation, the government tries to keep up the exchange rate of its currency. The maintenance of the exchange rate is cited as exchange pegging. 2- CLEARING AGREEMENT Before making or receiving payments in the foreign exchange the trading countries settle exchange rate, thus preventing its unnecessary fluctuation. This agreement entails such advantages. 1- Imports are regularized and come under a regulated system.  2- Balance of payment is bettered.  3- Exchange rate remains under control. 3- STANDSTILL AGREEMENT Under this method debt servicing of foreign loans is delayed stopping the outflow of foreign exchange. This delay or moratorium help keep up foreign exchange rate. It should be born on mind that the depletion in foreign exchange and gold reserves is one of the

Explain the Purchasing Power Parity Theory

Explain the Purchasing Power Parity Theory. DEFINITION When two countries trade with each other there must be a definite exchange rate between them. If both the countries are on gold standard, it will be quite simple to establish an exchange rate. But, if they are under non-convertible paper currency system it will be difficult to determine exchange rate. PURCHASING POWER PARITY THEORY tries to solve this problem. The theory suggests that the determination of exchange rate should depend on the purchasing power of the currencies in their respective countries. FOR EXAMPLE If a shirt in Pakistan can be purchased for a hundred rupees, and in Great Britain one pound, the exchange rate will be Pakistan Rs. 100/- is equal to UK £ 1 or 1£ = Rs. 100. In other words the purchasing power of a currency in its own country will determine its external value. The promoter of this Gustav Castle, an economist of Sweden. ASSUMPTIONS 1. The economic condition of both the countries should be identical,

Define the term Exchange Control

Define the term Exchange Control? DEFINITION OF EXCHANGE CONTROL  Regulating all foreign exchange activities and matter by and bringing them under the jurisdiction of a centralized authority is referred to as exchange control.  To import goods the importer pays to the commercial bank amount in the local currency. The bank, in turn, surrenders the local currency to the central bank for foreign exchange in order to pay it to the exporter.  In exporting goods, the central bank receives foreign exchange which it retains with itself and deposits with the commercial bank the equivalent amount in the local currency which is finally paid to the exporter.

What is the rate of foreign exchange? How it is determined under different monetary standards?

What is the rate of foreign exchange? How it is determined under different monetary standards? RATE OF FOREIGN EXCHANGE  The rate of exchange is the ratio at which one country’s currency can be exchanged for another. EXAMPLE If one American dollar can buy Pakistan’s fifty rupees, the rate of exchange for a dollar and a rupee would be: 1 US Dollar = Pak Rs.90.9 1 Pak Rs. = $ .0110 DETERMINATION OF RATE OF FOREIGN EXCHANGE UNDER DIFFERENT MONETARY STANDARDS   The rate of foreign exchange can be determined under different monetary standards. WHEN BOTH COUNTRIES ADOPT GOLD STANDARD   When two trading nations are on gold standard or their paper currencies are convertible into gold and silver, the exchange rate between their currencies would depend on the weight of gold contained in the coin. EXAMPLE If a Pakistan coin contains two grams of gold and India’s coin one gram, the exchange rate would be: I Pakistani Coin = 2 Indian Coins or 1 Indian Coin = 0.50 Pakistani coin Exchange ra

Define Rate of Exchange and describe the factors influencing the exchange rate.

Define Rate of Exchange and describe the factors influencing the exchange rate. The term foreign exchange refers to fund available for use in international transactions and may include foreign currency, deposits in foreign banks, and other liquid, short term financial claims payable in foreign currencies. FACTORS OF EXCHANGE RATE The following parameters play a vital role in the fixation of exchange. 1- BUSINESS CONDITION If business conditions are poor, the rate of exchange will fall. Business conditions are the result of production, business cycle, employment, balance of payment, balance of trade, inflation, and government policies. 2- INFLUENCE OF STOCK EXCHANGE The stock exchange is the indeed of a country’s economy inflow of foreign currency on the stock exchange, that is, foreign buying of shares and securities pushes the foreign exchange rate high. 3- BANK INFLUENCE Bank rate also affects the rate of exchange. The rate is the ratio at which a central bank rediscounts bills of