The term “finance” is associated with revenue and expenditure. Public finance is a branch of Economics which deals with the government’s revenue and expenditures of an economy. If it is related to the private sector, it is called private finance.Finance includes those means by which we make various types of payment. It may be defined as the provision of money at the time of need. In other words, it is the arrangement of money sources and the acquisition of funds for the satisfactory conduct … [Read more...] about 16 Major Difference between Public and Private Finance
Commerce
3 Major Types of Resolutions in a Company
Resolutions are communications embodying the views or intentions concerning some important matter. They are not addressed to anyone in particular and are drafted in the third person. A company resolution may be defined by Pitfield, “a formal declaration of the will or wishes of the company”.Kind of ResolutionsOrdinary ResolutionAn ordinary resolution is one which is passed by a simple majority of members entitled to vote such resolution is used for ordinary routine business at a … [Read more...] about 3 Major Types of Resolutions in a Company
Joint Stock Company
It is a popular type of business running across the globe under different territory based rules and regulation. The driving factors of this business type are different characateristics which includes its legal entity in the state, people trust and many others. It is also a form of business like other types of businesses including public limited company, partnership, sole proprietorship.Joint Stock Company is a type of business which gives business ownership rights to share holders by giving … [Read more...] about Joint Stock Company
Essentials of Valid Contract
A contract is an agreement between two or more persons to do or not to do some particular thing, such agreement being enforceable at law. According to section 2 (h) 1872 contract act, It is an agreement enforceable by lawTherefore, is an agreement the object of which is to create an obligation. In other words, It is a combination of two ideas- Agreement and obligation.Contract = Agreement + ObligationAn agreement creating and defining obligation between the parties SALMOND“An … [Read more...] about Essentials of Valid Contract
Classification of Wages
“The wage is a sum of money paid under contract by an employer to a worker in exchange of services rendered by the worker” BenhamAnyhow, more comprehensively,“A wage is the remuneration paid to labour in return of services rendered either under contract or independently.”Classification of WagesThe rewards of labour can be classified under the following categories:SalaryIf a person is highly paid, the remuneration is called salary e.g. the earning of a professor, engineer, … [Read more...] about Classification of Wages
Difference Between Trust & Holding Company
Holding Company and Trust are two main types of limited partnership and joint stock company. The major differences in both are their structures as well as few other things.Holding Company: is a company which actually holds shares of other producers and services providers. These companies are not producing goods and services by themselves but they earn a profit this way. Advantages and Disadvantages of holding companies must be considered before setting up.Trust Company: is a type which … [Read more...] about Difference Between Trust & Holding Company
Functions of Retailer
A retailer is the last link in the chain of distribution of consumer products. He brings the producer in close touch with the consumer. He is a part of the distribution mechanism which cannot be dispensed due to his following valuable servicesDistribution of GoodThe functions retailers perform are the consequence of the separation of distance, time and information between producers and consumers. All retailers are involved in assisting in the physical movement of goods and in effecting a … [Read more...] about Functions of Retailer
Rights of Parnters
ConsultationEvery partner has equal rights in disposing of the matter. However, ordinary matters are decided by the simple majority of partners and policy matters are settled with the consent of all the partners but every partner must be consulted.Receive ProfitEvery partner has a right to receive equal profit from the management in the absence of an agreement.Participation in the ManagementEvery partner is allowed to take part in the management of the … [Read more...] about Rights of Parnters
Duties of Partners
To Perform True ServicesEvery partner must perform true services in partnership i.e., to maintain the true accounts, to keep the actual vouchers records and transactions and to permit the other partners to inspect the accounts fairly.To be Sincere and CarefulEvery partner must be sincere, faithful and careful to other partners. He should discharge his duties very fairly.To work for Best AdvantagesEvery partner is expected to conduct this business of the firm to the … [Read more...] about Duties of Partners
Business Combination
Business combination is formed when two or more business undertaking units combine to carry on business together for achieving the economic benefits.It is also originated when a number of different business concerns of same line combine together under one management with a view to achieve some definite objects of mutual benefits.At present we find a general tendency to form cartel, trust, holding company, pool and amalgamation etc at home or abroad for the object of increasing capital … [Read more...] about Business Combination