Henry Fayol, a Mining Engineer and Executive of France, who listed out 14 Principles of Management. Two such Management theories are Unity of Command and Unity of Direction. Unity of Command proclaims that each employee is accountable to one supervisor and thus, get orders from him, relating to the task to be performed. Unity of Direction, on the other hand, signifies that the series of activities having similar objective should be performed as per a single plan and that too under one … [Read more...]

Audit Plan refers to the scheme formulated by the auditor that comprises of strategy or approach, that is followed for carrying out audit. On the other hand, audit programme implies a range of verification procedures, which are applied to the final accounts, to acquire audit evidence, and thus helping auditor in providing an informed opinion. While conducting the audit, the auditor requires evidence, in support of his opinion. A collection of evidence is the beginning of the auditing process. … [Read more...]

Advertising is one of the widely used techniques of promotion, wherein modes like television, radio, newspapers, internet, etc. are used for creating demand or interest of the customers towards the product or services offered by the company. On the other hand, personal selling is the verbal communication of the message, to one or more customers, so as to create sales. Both advertising and personal selling are two major elements of promotion mix, which is employed by the organization to reach … [Read more...]

In simple terms, insurance is the act of indemnifying the risk, caused to another person. Conversely, reinsurance is when the insurance company takes up insurance to guard itself against the risk of loss. The two concepts are very similar to each other but may differ in they way; they are applied. Insurance is a very common form of financial protection which is used to provide protection against the risk of losses. On the other hand, reinsurance is used by the insurance company, when it does … [Read more...]

When the members of the organization, communicate with each other, it is called as internal communication. However, when there is a communication between members of the organization, with the outside party, it is said to be external communication. These are two types of communication, which can be seen in the corporate world. This article excerpt will provide you all the important differences between internal and external communication. In the process of management, communication plays a … [Read more...]

Internal control is a system that comprises of control environment and procedure, which help the organization in achieving business objectives. On the other hand, internal audit is an activity performed by professionals to ensure that internal control system implemented in the organization are effective. Control is one of most prominent human need, that is present in almost every human activity. So, in business too, control have a great role to play in ensuring best possible use of resources … [Read more...]

BCG matrix is a matrix used by large corporations to decide the ratio in which resources are allocated among various business segments. Similar to this, GE matrix also helps firms decide their strategy with respect to different product lines, i.e. the product they should add in the range of products offered by them and in which opportunity the firm should invest. Both BCG matrix and GE matrix are two-dimensional models, that are used by big business houses, having several product lines and … [Read more...]

Dissolution of Partnership is not equal to the dissolution of partnership firm. It is due to the fact that when the jural relation present between all partners, comes to an end, it is known as dissolution of firm, however, when any one of the partners become incapacitated, then the partnership between the concerned partner and other partners of the firm, comes to an end, but the firm may continue to operate, if other partners desire so. The fundamental difference between the dissolution of … [Read more...]

Bin Card implies a document which records the quantity of material received by, issued to and remained in stores. Conversely, Stores Ledger is a ledger account (accounting record), that maintains the record of the transit of goods in and out, the stores, both in quantitative and monetary terms. Perpetual and Periodic Inventory System are two systems that record the movement of stock maintained by the stores department. Perpetual Inventory System keeps a record of every now and then of … [Read more...]

Forecasting, is basically a prediction or projection about a future event, depending on the past and present performance and trend. Conversely, planning, as the name signifies, is the process of drafting plans for what should be done in future, and that too is based on the present performance plus expectations. Planning and forecasting are two important managerial functions that are relevant for other functions. Basically, forecasting talks about what could practically happen, depending on … [Read more...]