Key Differences

Difference Between Leadership and Management

Leadership is a quality of influencing people, so that the objectives are attained willingly and enthusiastically. It is not exactly same as management, as leadership is one of the major element of management. Management is a discipline of managing things in the best possible manner. It is the art or skill of getting the work done through and with others. It can be found in all the fields, like education, hospitality, sports, offices etc. One of the major difference between leadership and … [Read more...]

Difference Between Profit Maximization and Wealth Maximization

Financial Management is concerned with the proper utilization of funds in such a manner that it will increase the value plus earnings of the firm. Wherever funds are involved, financial management is there. There are two paramount objectives of the Financial Management: Profit Maximization and Wealth Maximization. Profit Maximization as its name signifies refers that the profit of the firm should be increased while Wealth Maximization, aims at accelerating the worth of the entity. Profit … [Read more...]

Difference Between Policies and Procedures

Rules and regulation of the business organization are framed in the form of policies. These are the guiding principles of an organization. It should not be confused with procedures, as both are are created by top level management for middle and low-level management. Procedure implies the step by step sequence, for the performance of activity within the organisation. Policies are general statement that sets out the limits within which decisions are taken by the managers and thus assures the … [Read more...]

Difference Between Planning and Strategy

Planning is "Thinking before the action takes place". It decides beforehand what, when, and how the task is to be accomplished. It is not exactly the same as strategy, which is nothing but "a comprehensive plan." The strategy is all about using a trick to gain success for a particular purpose. It is the skill of managing the affairs of the enterprise. In business, one might come across with the terms planning and strategy, end number of times. Planning is the basic function of management that … [Read more...]

Difference Between Merger and Acquisition

Merger and acquisition are the two most commonly applied corporate restructuring strategies, which are often uttered in the same breath, but they are not one and the same. These are the form of external expansion, whereby through corporate combinations, business entities purchases a running business and grows overnight. It helps the business in maximizing the profit and growth by increasing the level of production and marketing operation. While merger means "to combine", Acquisition means "to … [Read more...]

Difference Between Accounting and Auditing

When accounting process ends, auditing begins, for the purpose of determining the true and fair picture of books of accounts. It is an activity of record keeping and preparation & presentation of the financial statement. Accounting is used by the firms for keeping a track of their monetary transactions. It is the language the business understands, as it is the tool for reporting financial statement of the business entity. Conversely, Auditing is an activity of verification and evaluation … [Read more...]

Difference Between Lok Sabha and Rajya Sabha

The President of India, the Lok Sabha, and the Rajya Sabha are collectively known as the Indian Parliament, which is the chief legislative authority in India. The President of India is the head of the Parliament. The Lok Sabha and the Rajya Sabha are the two houses of Parliament, wherein Lok Sabha is the lower house of the Parliament and Rajya Sabha is the upper house of the Parliament. These two houses of Parliament primarily differs in their powers and functions. The tenure of Lok Sabha is … [Read more...]

Difference Between Finance (Capital) Lease and Operating Lease

The lease is a finance agreement in which lessor (owner of the asset) purchases the asset and let the lessee (user of the asset) use the asset for a limited period against periodic payments, i.e. lease rentals. The terms and conditions of the lease are written in the lease deed. Finance or capital lease and operating lease are two types of lease. Finance Lease is a lease in which the risk and rewards are transferred to the lessee with the transfer of the asset. Unlike Operating Lease, in which … [Read more...]

Difference Between Training and Development

Employee training and development is an indispensable part of human resource function and management. Both the activities aim at improving the performance and productivity of the employees. Training is a program organized by the organization to develop knowledge and skills in the employees as per the requirement of the job. Conversely, Development is an organized activity in which the manpower of the organization learn and grow; it is a self-assessment act. In training, the employees are … [Read more...]

Difference Between Depreciation and Amortization

Depreciation and amortisation are both meant to reduce the value of the asset year by year, but they are not one and the same thing. Writing off tangible assets for the reporting period is termed depreciation, whereas the process of writing off intangible fixed assets is amortization. Long-term fixed assets refer to the assets whose benefit is enjoyed for more than one accounting period. Fixed assets can be tangible fixed assets or intangible fixed assets. The value of fixed assets tends to … [Read more...]