Allowance refers to the financial benefit which an employer provides to employees in addition to the basic salary they draw, so as to meet the expenses that employees may incur to perform the job or because of it. Conversely, perquisites refer to a financial benefit which an employer provides to an employee because of their job or the designation they hold. These are like add ons to an employee's compensation. It facilitates the management of a number of expenses for which the employee does … [Read more...]

Management Audit refers to an independent examination of the managerial activities undertaken at different levels of the management so as to determine its functions, efficiency and achievement. On the other hand, Cost Audit refers to the process of authenticating the cost of production, based on the accounts, concerning the use of material, labour and overheads, which a company maintains. What does the word 'Independent' mean in Auditing? 'Independent' means the opinion which an auditor … [Read more...]

While in multichannel retailing many channels of distribution are used to focus on the product, in omnichannel retailing, different channels of distribution are used by the marketer to focus on the customer. We all know that customers have multiple options today from where they can buy products, but they have lacks time and attention. In this way, various approaches to marketing are used by marketers these days. Of these approaches, the two most common ones are - Multi-Channel Retailing and … [Read more...]

Based on access to capital, the companies are classified into listed companies and unlisted companies. Every listed company is a public company, but vice versa may not be true. Further, an unlisted company can be a private limited company or a public limited company. For the purpose of trading in the stock market, a company must list its securities in the stock exchange, which implies that the company's name is registered in the Stock Exchange. Here, it is to be noted that equity securities … [Read more...]

Do you guys know that only directors can be managing directors of the company, but any person with the requisite qualification can become a whole-time director of the company? There is always confusion regarding the roles and functions of the Managing Director and Whole-time Director. Who are Directors? As the name suggests, directors are the officers of the company who are appointed with an aim of directing and supervising the company's affairs. According to the Companies Act, the term … [Read more...]

The primary difference between bilateral and multilateral trade lies in the number of participants, i.e. in a bilateral trade agreement involve two participants i.e. two nations, whereas in the case of multilateral trade agreements, entails three or more nations without discrimination between the countries involved. What is International Trade? International trade means the exchange of goods and services among multiple nations, wherein domestic companies can export their specialties to other … [Read more...]

There are instances when all the shares which a company offers are not subscribed by the company, in that case, the total number of shares applied for is less than the number of shares offered by the company to the public. This is a situation of under subscription. On the other hand, there are also certain cases when the general public subscribes for more shares than the shares offered by the company, then in this case over subscription takes place. In this regard, first of all, we need to … [Read more...]

When a shareholder pays the amount due on calls before it is demanded, it refers to the calls in advance, and the amount received by the company, is kept in a separate account, i.e. Calls in Advance A/c, and so it is not indicated as the capital of the company until it is demanded by the company from the shareholders. In contrast, when the company issues notice to all the shareholders regarding the payment of allotment or call money due on the shares, it needs to be paid within the specified … [Read more...]