APC and MPC are two concepts in economics, which sound similar. However, while average propensity to consume (APC) can be described as the fraction of aggregate consumption to aggregate income, marginal propensity to consume (MPC) is the fraction of change in the consumption expenses, to income. What is Propensity to Consume? Propensity is the inclination towards something that drives your behavior in a definite manner. So propensity to consume is the drive to consume corresponding to income. … [Read more...]

Collection of data is the first step in the field of research and once the collection process is complete the next step is to look for ways to condense and arrange the data, to study their characteristics. This process is known as the presentation of data. Data in its original form which the researcher first collects from research is termed ungrouped data. In simple words, ungrouped data or raw data is a mere list of numbers that does not convey anything. This is because no summarization or … [Read more...]

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...]

When the auditor is completely satisfied with the truth and fairness of the financial statements of the company's accounts not have any qualifications, i.e. negative statements. Such a report is called an unqualified or clean report. Contrarily, there are instances when the auditor qualifies the audit report, when the company's financial records are not kept as per the generally accepted accounting principles, however, no misrepresentations are found. In such a case, the report issued by the … [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...]