Recently, the framework of standards on auditing and guidance notes on related services are issued, wherein a difference between audit and related services is clarified. Related services include reviews, agreed upon procedures, compilation. The review is often contrasted with audit, but they are different in the sense that an audit is a thorough examination of the financial information of an organization, to give his/her opinion on the same. On the other hand, the review can be understood as … [Read more...]

You might have noticed that we make statements like the trains may be late, it may take an hour, to reach home and so forth. This type of statements indicates the probability of an event, as its occurrence is not certain. It implies the extent to which an event is possible to happen. Probability is divided into two types, objective and subjective probability. Subjective probability is based on attitude, belief, knowledge, judgment and experience of the person. In mathematics, we study … [Read more...]

The term insurance can be described as an arrangement through which the risk of loss can be shifted from one party (insured) to another (insurer), by paying a specified sum, at definite intervals, i.e. premium. Double insurance is a form of insurance, wherein the individual/company insures a particular property with more than one insurer or with multiple policies from the same insurer. Double insurance is not exactly same as reinsurance, as it is a transfer of risk on a policy by the … [Read more...]

Public Relations (PR) means professionally handling a positive public image by the company. It is an important element of promotion mix, that helps in maintaining good relations with the public. On the contrary, Publicity is infotainment, i.e. which tends to inform and entertain the general public at the same time. It provides some interesting, juicy, controversial news to the general public, that has the capability of changing their opinion or outlook, about the product or company. While … [Read more...]

Learning can be understood as the fairly long-lasting change in the behaviour, arising out of the experience. It is useful for us to adapt ourselves according to the environment. The simplest form of learning is called conditioning, which can be of two kinds, i.e. classical conditioning and operant conditioning. Classical Conditioning is one in which the organism learns something through association, i.e. Conditioned Stimuli and Unconditioned Stimuli. Operant Conditioning is the type of … [Read more...]

Positive reinforcement is the process that enhances the likelihood of the response, by adding something. On the contrary, negative reinforcement is one that intensifies the probability of response, by removing or reducing something. In psychology, the concept of reinforcement is studied in operant conditioning. Reinforcement means an act in which the experimenter attempts to manage the reinforcer. Reinforcer implies the stimuli that increase the response rate. Reinforcement can be positive or … [Read more...]

One of the common strategies of the firms, to expand their business at the national or international level, is to set up branches, at different places. Branches are a part of the parent organization, which are opened to perform the same business operations as performed by the parent company, to increase their reach. Branches are not exactly same as the subsidiary company. A subsidiary company is a company, whose controlling stake is held by another entity, i.e. the holding company. Both … [Read more...]

The product is described as an article or item, which is offered by the company for sale, in exchange for money. We all know that it is the features of the product that attracts and retains customers for a long time, but the role of branding and packaging is also substantial. Branding is used to assign a unique identity to the product so that customers can easily differentiate it with other products available in the market. Now coming to, packaging, it ensures the protection of the product … [Read more...]

Line Organization is the form of organization, wherein the authority flows from the person present at the top of the organizational hierarchy to the person working at the lowest level. In line and staff organization, the hierarchy remains same as in the line organization, but specialists are attached to the front line managers to advise and guide them on significant issues. A structural relationship is required to be developed between different departments and the people working in them, for … [Read more...]

To measure inflation in an economy, usually, Wholesale Price Index (WPI) and Consumer Price Index (CPI) are used. Wholesale Price Index helps in measuring the average change in prices received on bulk sale of goods. On the other hand, Consumer Price Index is one that computes the changes in the general price level of a class of consumer goods. Indexation is the process of adjusting the monetary proceeds such as wages, interests, dividend, taxes, etc., with the help of price index, so as to … [Read more...]