We all know that man is a social animal who depends on others to fulfilling basic needs. Due to the continuous interaction between people, they become mutually dependent on one another. While a community is an organically functioning, mutually interdependent system, society is a natural, externally organized group. A community and society are not static, as they keep on changing. The difference between society and community relies on the individual's role. A community is formed and … [Read more...]

Sourcing is a process in which the firm makes an attempt to find out the best vendor for supplying materials with standard quality and the right price. Also, it ascertains the scope of strong and lasting relationships with vendors. Further, it maintains the relationship over a period of time for mutual benefit. In contrast, procurement is the process of buying the materials in the right quantity and quality, which the firm requires to carry out the production process. Do you guys know that … [Read more...]

Do you know that National Income is the accurate yardstick of how effectively the economy is performing? Therefore, it is very important to measure the national income of the country, as it portrays a clear picture of the soundness of the economy. Also, it determines the level of economic activity in a country. Simply put, it is the total income of the nation. It is the monetary value of the final goods and services produced in a particular period. Per Capita Income of the country represents … [Read more...]

A departmental store is a huge retail showroom consisting of various departments functioning in the same place. In this, each department limits its functions to a specific kind of trade. Therefore, the departments are a complete unit in themselves, i.e. each department is a separate shop. Talking about multiple shops, which consist of several branch shops, which a business enterprise owns. These shops are set up at different locations in the city and throughout the country. They specialize in … [Read more...]

MBO and MBE are the two models of management. The aim of these two models is to help the management focus on the attainable and ultimate goal, as well as to channelise their efforts into the achievement of the best possible results with the help of available resources at that point in time. MBO is an acronym for Management by Objectives. MBO is a system of management wherein each member takes part in the organization effectively. Conversely, MBE is a short form for Management by Exception. … [Read more...]

Generally, a company gives two kinds of dividends to its shareholders - cash dividends and stock dividends. A cash dividend is one in which the company distributes a definite amount of money to each shareholder for each share owned. On the other hand, a stock dividend is obtained from distributable equity in the form of stock. Oppositely, Stock Split is another action which the company takes, in which the number of shares held by a shareholder gets multiplied. In this, what exactly happens is … [Read more...]

Have you any idea of the shipping agreements? There are two famous international shipping agreements, i.e. CIF contract and the FOB contract. These contracts are used for the transportation of goods between the buyer and seller. In FOB contracts, the seller's duty is to load the goods onto the ship proposed by the buyer. As against, in CIF contracts, the duty of the seller is to deliver the goods to the shipping company for transmitting them to the buyer. Do you know? FOB and CIF contracts … [Read more...]

In auditing, verification implies the process of checking the accuracy of the value of assets and liability. The auditor checks the accuracy with regard to the title and the existence of the assets and liabilities as the company's books reflect. Valuation of assets means the determination of the value of the specific asset of the enterprise on the balance sheet date. It involves testing the correct value of assets depending upon their utility. In short, it is all about finding out the … [Read more...]