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...]

The two most popular and flexible forms of business organisation are LLC and LLP. As these two combine the features of a general partnership and company, most of the people assume that they are one and the same thing. In LLP the internal governance structure is regulated by the partnership agreement, but in case of LLC, the same is regulated by the respective statute. The management of LLP is performed by the partners themselves, whereas the LLC's business affairs are looked after by the … [Read more...]

Operant conditioning refers to a learning type, wherein outcomes of an action regulate one's behaviour. The consequence can be a reward or penalty. It was coined by famous behaviourist B. F. Skinner, who hold that behaviour is something which can only be described by observing it and not by thoughts and motivation. Reinforcement and punishment are the two fundamental notions of operant conditioning wherein the former, stimulates a particular behaviour, the latter, discourages a specific … [Read more...]

While the trademark is a mark, which can be a word, phrase, an image or anything else used to recognise the source of goods or service. The patent is a right granted to the inventor of something to manufacture, use or sell the invention. An idea remains an idea until and unless it is not transformed into something that has value. Once the idea is converted into a human creation, i.e. product, design, or any artistic work, it becomes intellectual property. Intellectual property is classified … [Read more...]

Insurance is defined as an arrangement, in which the insurer commits to indemnify the loss or damage caused to the insured due to natural calamity or any other event whose happening is not certain, for special consideration. The term insurance is often juxtaposed with assurance, as these two are financial products sold by the company to people so as to protect their interest, however, they are different. Assurance refers to the agreement in which the insurer provides cover of an event, which … [Read more...]

It is easy to get confused about information and knowledge. People often use the terms interchangeably, without knowing the fact that there are slight and subtle differences between information and knowledge. These two are important concepts of knowledge management system, wherein the former means processed data about someone or something, while the latter refers to useful information gained through learning and experience. When the data collected is filtered, it turns out as information. Of … [Read more...]

We dwell in a world, which is completely uncertain. There is end number of factors that have the capability of endangering our physical, moral or financial health which always surrounds us and they are beyond our control. You might have encountered, tragic deaths or causalities, loss of property and life due to natural calamities or human-made disaster. These forces ultimately pose a risk to human life or wealth or nature. The term 'risk' refers to the chance of loss due to a particular activity … [Read more...]

Economics is all about making choices, in order to make best possible use of the scarce resource. Whenever we make a choice among various alternatives, we have to forgo other options. In this context, two economic terms are often misconstrued, which are the trade-off and opportunity cost. While a trade-off denotes the option we give up, to obtain what we want. On the other hand, the opportunity cost is the cost of the second best alternative given up to make a choice. In other words, it is … [Read more...]