Buying and Selling are a part of daily routine. In fact, we indulge in a commercial transactions even without noticing it. In this context, invoice and receipt are the two business terminologies that we encounter very often. Do you know the issuance of both is on different events by the seller? A seller issues an invoice to the buyer when he delivers the goods on the customer's order, but the amount is due for payment. On the other hand, a seller issues a receipt when the customer pays off … [Read more...]

Bankruptcy can be understood as a financial state, whereby a person is declared insolvent by the court, resulting in legal orders directed to resolve insolvency, i.e. to dispose of personal assets to discharge obligations. On the other hand, liquidation may be defined as the process of winding up of company's affairs by disposing-off assets, in order to discharge liabilities of the debenture holders creditors, employees and other parties. While bankruptcy nothing but a legal scheme, wherein … [Read more...]

Cash can be defined as the money readily available with the enterprise, in the form of currency notes and coins. On the other hand, funds refer to each and every financial resource of a firm like cash, bank balance, accounts receivable and so on. It is something, which kept aside by the organization for a distinct objective. No matter what the size or nature of the organization is, money is the basic requirement of every enterprise, as it helps the business to survive and grow. The … [Read more...]

In business, the recording of transactions takes place only when there is some documentary evidence present. They confirm the transaction. These can be in the form of receipt, counterfoil, cash memo, pay-in-slips, and invoice. These evidences are nothing but a source document. These documents act as a base to prepare vouchers. Based on these vouchers, the accountant passes entries in the books of accounts. Coming to invoice, whenever any credit sale transaction takes place, the firm prepares … [Read more...]

A private limited company is a closely held one and requires at least two or more persons, for its formation. On the other hand, a public limited company is owned and traded publicly. It requires seven persons for its setup. What is a Company? The company refers to that voluntary association of persons which is established with an aim of achieving common objectives. It is a separate legal entity, i.e. one should not confuse between the company and its members as both are different … [Read more...]

A Purchase Order is simply an order raised by the organization, which contains information related to the product or the number of products that the organization wants to purchase from a supplier. On the Contrary, a Sales Order implies an order generated by the firm and delivered to its customer that acts as a confirmation document regarding the supply of the specified quantity of the goods or services, at a specified time, and agreed upon terms and conditions. Basically, the purchase order … [Read more...]

Manager - An employee of the organization, responsible for its management. Leader - A person who leads, guides, and directs others. There is always a buzz when we talk about the terms leader and manager. In an organizational setup, a manager is an important link between the firm and its stakeholders, i.e. employees, customers, suppliers, shareholders, government, society, and so forth. He is the one who performs basic managerial functions. Conversely, a leader is the one who inspires, … [Read more...]

The sales executive is the most important link between the company and its clients, who offer products and services to the customers and negotiate contracts, so as increase profits. On the other hand, marketing executives, play a crucial role in every organization who work with other employees, such as market research team, distribution staff, advertising team and so on The marketing executives focus on maximizing profits by creating sales and providing those products to customers that match … [Read more...]

In a commercial transaction, a product or service is exchanged for a price, between the buyer and seller. So, we can say that price is the amount to be paid, in order to get the product or service. There are many people who believe that price, cost and value of a product or service are one and the same thing, but there is nothing like that. Cost is basically the aggregate monetary value of the inputs used in the production of the goods or delivery of services. Conversely, Value of a product … [Read more...]

To understand the market mechanism, one needs to have a good knowledge of demand and supply, as these two forces regulate the entire market. Demand implies the desire for a good, supported by the ability and readiness to pay for it. On the other hand, supply alludes to the total amount of a commodity ready for sale. When demand rises there is a shortage in the supply and when a supply is enough the demand falls short, so there is an inverse relationship between these two elements. Nowadays … [Read more...]