Notes and Study material for Exams
FUNCTIONS OF MANAGEMENT – STAFFING Staffing refers to the managerial function of employing and developing human Resources for carrying out the various managerial and non-managerial activities in an organisation. This involves determining the manpower requirement, and the methods of recruiting, selecting, training and developing the people for various positions created in the organisation. Staffing … Read more
FUNCTIONS OF MANAGEMENT– DIRECTION (Communication,Supervision,Motivation,Leadership) Directing is concerned with instructing, guiding, supervising and inspiring people in the organisation to achieve its objectives. It is the process of telling people what to do and seeing that they do it in the best possiblemanner. Elements in Directing: The four essential elements in Directing are : … Read more
FUNCTIONS OF MANAGEMENT : COORDINATION AND CONTROL COORDINATION “The Harmonization of activities of different work groups and departments.” Coordination is the orderly arrangement of individual and group efforts to provide unity of action in the pursuit of a common goal. All these departments must function in an integrated manner so that … Read more
WEALTH MAXIMIZATION Concept: Wealth maximization is the concept of increasing the value of a business in order to increase the value of the Shares held by stockholders. The concept requires a company’s management team to continually search for the highest possible returns on funds invested in the business, while mitigating any … Read more
CAPITAL STRUCTURE The financial requirement of a firm can be met through ownership capital and/or borrowed capital. The ownership capital refers to the amount of capital contributed by the owners. In case of a company, it refers to the amount of funds raised by issuing Shares. The main characteristic of the ownership capital is that … Read more
COST OF CAPITAL The primary meaning of cost of capital is simply the cost an entity must pay to raise funds. The term can refer, for instance, to the financing cost (interest rate) a company pays when securing a loan. In other words, Cost of capital refers to the opportunity cost of making a specific Investment. It is the rate … Read more
Basics Of Recruitment, selection, induction, training & development Recruitment (hiring) refers to the overall process of attracting, shortlisting, selecting and appointing suitable candidates for jobs (either permanent or temporary) within an organization. Recruitment can also refer to processes involved in choosing individuals for unpaid roles. Managers, human resource generalists and recruitment specialists may be tasked … Read more
A Financial Statement is an organized collection of data according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspects of a business firm. It may show assets position at a moment of time as in the case of balance sheet, or may reveal a series of … Read more
Meaning of Working Capital Every business needs funds for two purposes for its establishment and to carry out its day-to-day operations. Capital required for a business can be classified under two main categories viz. (i) Fixed capital (ii) Working capital. Long-term funds are required to create production facilities through purchase of fixed assets such … Read more
RESPONSIBILITY ACCOUNTING Responsibility accounting is a management control system based on the principles of delegating and locating responsibility. The authority is delegated on responsibility centre and accounting for the responsibility centre. Responsibility accounting is a system under which managers are given decisions making authority and responsibility for each activity occurring within a specific area of … Read more