Law can be understood as the body of rules, established by the appropriate authority and adopted by the country as rules and principles that govern the actions of its members, that can be put into practice by the imposition of penalties. There are two types of laws, that are adopted in many countries, namely common law and statutory law. The common law implies the law that emerges from new decisions made by the judges, courts and tribunals. On the other hand, the statutory law means a formal … [Read more...]
Difference Between KPI and KRA
Every business enterprise has a set of proposed objective, which must be attained within the given time frame to reach its mission. In order to determine whether the route chosen by the enterprise is correct or not, the objectives are evaluated against dedicated metrics, with the help of KPI. KPI stands for key performance indicator that denotes a quantifiable metric, for a defined objective. It exhibits the factors leading to the success of an organization. As against, KRA or otherwise … [Read more...]
Difference Between Organization and Institution
Organization means a systematically organized collection of people, with a common goal and identity associated with an external environment, like a business entity or a government department. It is often misconstrued with the institution, which encompasses an entity, with a high degree of sustainability, that can be seen as an indispensable part of the large society or community. The term institution is commonly used for the place of knowledge, i.e. an entity which delivers information or … [Read more...]
Difference Between Private Placement and Preferential Allotment
To invite general public, for subscribing the shares of a company, it makes a public issue, by way of an Initial Public Offering (IPO). However, when a company seeks to raise funds, without making a public issue, then it has the option of the private placement, wherein, the securities (shares and convertible debentures) are issued to private investors, not exceeding 200 members in a financial year. There are two kinds of the private placement, namely, preferential allotment and qualified … [Read more...]
Difference Between Right Shares and Bonus Shares
The company's capital is divided into small shares of definite price; wherein each share is regarded as a unit of ownership, that is offered to the general public for sale, to raise funds from the market. It can be ordinary shares or preferred ones. The Companies Act provides that the subscribed capital of the companies can be increased, by issuing further shares to the existing shareholders at discounted prices, in the form of right shares. Contrary to this, when a company possess the huge … [Read more...]
Difference Between Interim Dividend and Final Dividend
Dividend connotes that portion of company's profit, which is not retained in the business but distributed by the company among its shareholders, as a return on their investments, based on the shares held by them. The dividend announced by the company at the end of the financial year, recommended by the board of directors, at the company's general meeting is known as a final dividend. Coming to the interim dividend which is declared by the company's board of directors between two general … [Read more...]
Difference Between Annual General Meeting (AGM) and Extraordinary General Meeting (EGM)
Meeting of members should be held to take members approval on some business matters. To transact ordinary business and the special business (if any) of the company, the annual general meeting is held by the board, whereas special business is discussed in the extraordinary general meeting. A company has a separate legal identity distinct from its members, but they are the ones who establish the company as a corporate entity. Nevertheless, the company is an artificial person, and so its will is … [Read more...]
Difference Between Sales and Business Development
With the expansion of business activities, in the past few years, the way of doing business is completely changed. Nowadays, it is quite easy to draw the attention of customers towards your product or service, through various means. However, the aim of business remains same, i.e. to maximize revenue and profitability. Sales are all about selling product or service to the final consumer at an agreed price, by using different business strategies and techniques. On the contrary, business … [Read more...]
Difference Between Physical Capital and Human Capital
Capital alludes to the company's wealth in the form of money or assets, that can be utilized for commencing a business or investing in a running business, to generate more money. It can be of two types physical capital or human capital. The physical capital implies the capital which is tangible in nature, such as money, plant and machinery, furniture and fixture, building etc. On the contrary, human capital is relatively a new concept, which implies the collection of an individual's skills, … [Read more...]
Difference Between Maslow and Herzberg’s Theories of Motivation
Motivation implies the process of encouraging people to act in order to attain the desired objectives. It is something that stimulates an individual to keep doing the act already initiated. In this context, Abraham Maslow, a renowned psychologist, highlighted the elements of the theory of motivation, in a classic paper released in 1943. His theory is based on human needs and its fulfilment. On the other hand, Frederick Herzberg is an American psychologist, who coined out the concept of job … [Read more...]
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