Key Differences

All business entities need funds to finance their day to day operation. There are two ways of raising funds for the business i.e. in the form of equity which mean the owned capital of the company or debt which represents the borrowed capital of the company. When funds are raised as equity, the company approaches various individuals to sell its shares at a fixed price. When this offering is done by the company for the first time, it is known as IPO or initial public offering. As against this, … [Read more...]

To raise capital from the general public, the first and foremost requirement of a public company is to issue a prospectus. A prospectus is a disclosure document used to invite the general public to subscribe for shares. It contains all the relevant details and facts about the company that helps the investors in rational decision making. The prospectus is often contrasted with the statement in lieu of prospectus, but they are not same, in essence, the statement in lieu of prospectus is issued … [Read more...]

When it comes to hiring a person for performing tasks, there are two options available, before the business person, i.e. employee or independent contractor. An employee is a person who provides services to the employer in exchange for an adequate consideration, i.e. salary. On the contrary, an independent contractor is a person, or an entity, which provides services to the clients for a definite fee. Making a choice between these two would be difficult as both have their pros and cons. … [Read more...]

The goods whose demand tends to increase as the income of the consumer rises are called normal goods. As against this, inferior goods are the goods which encounter a fall in demand as the income of consumer rises. Income is the basic determinant of the market demand which determines the purchasing power of the consumer. Therefore, the individuals who have higher disposable incomes spend the larger part of their incomes on consumer goods and services as compared to lower incomes. Income … [Read more...]

Based on personality, people can be bifurcated into two categories i.e. Type A personality and Type B personality. It is the most common individual-level stressor and explains two different types of personality. These are known to influence the possibility of an individual's acquiring health-related problems like heart ailments. Type A people are highly competitive, self-critical. They continuously strive for goals without paying much attention to efforts and accomplishments. On the other … [Read more...]

In the past few years, mental health of employees, especially of the executives, is the major concern of most of the employers. This is because, mental breakdown is common these days due to tension and work pressure, which may result in low productivity and profits, and even high employee turnover. At a particular point in our career, we all encounter stress or burnout, which is associated with the corporate world. Stress refers to a mental or emotional state, wherein a person encounters tension … [Read more...]

The primary difference between arbitration and conciliation is that arbitration is the process by which parties select an independent person, who renders a decision regarding the case. Conversely, conciliation attempts to make parties come to an agreement, about the problem at hand. Industrial Disputes are always harmful to all stakeholders - employees, society, management, government, etc. resulting in loss of revenue, production, profit and much more. However, it is the employees who are … [Read more...]

The two biggest stock exchanges in the United States, as well as in the world are New York Stock Exchange (NYSE) and National Association of Securities for Dealers Automated Quotation (NASDAQ) in terms of market capitalisation and turnover. While NYSE is an auction market, NASDAQ is a dealer market. In the trading sector, these two leading exchanges have gained sheer popularity, as they provide the exclusive trading platform. If you are also new to this, you might want to know, which one … [Read more...]

Letters are a form of verbal and written communication, which contains information or message, send by one party to another, to convey the message. It is sent by one party to another, to provide certain important information. There are two types of letters, i.e. formal letters and informal letters. The formal letter is written for business or professional purposes with a specific objective in mind. It uses simple language, that can be easy to read and interpret. On the contrary, informal … [Read more...]

LLP is also a form of partnership, where the liability of partners is limited as well as any partner will not be held liable for the acts of other partners. General Partnership, on the other hand, brings unlimited liabilities to the partners concerned and so they are jointly or severally liable for the debts. Are you planning to commence a business or want to expand the existing one? You have to take an important decision here, regarding the selection of the form of business organisation. The … [Read more...]