Textile is a term that comes from “texture” which means “to weave”. The textile industries have a special importance in the national economy of developing countries. By keeping the creative activities of the manufacturing process in their own terms, the developing countries in Europe have restricted their textile industries and are also transferring their production facilities to other less developed countries. Basically, textile products are the requirement of human beings and have a great … [Read more...] about Role of Textile Industry in Pakistani Economy
Economy
16 Major Difference between Public and Private Finance
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
Advantages and Disadvantages of Short Term Credit
Creditor's funds are available at easy rates than the owner's funds. The creditors generally agree to receive a lower rate of interest. But on the other side, the owner's demand for more protection and security of their capital invested. Creditors have no right to participate in the activities of the business to which they are advancing funds. So owners may utilize the number of creditors for the best interest of their business. But the desired position may not be maintained in case of … [Read more...] about Advantages and Disadvantages of Short Term Credit
Determination of Market Price [Diagrams & Examples]
The price determined during the market period (i.e. the period, generally a day or so in which the supply cannot be increased due to increases in demand of a commodity) is called market price. On the other hands, the price determined under the short run and the long run is called the normal price. “It is the price which is settled by the interaction of demand and supply forces during the market period, i.e. the time period which is so short that the sellers are unable to increases or … [Read more...] about Determination of Market Price [Diagrams & Examples]
Extraction and Contraction of Supply
If there is a change in quantity supplied due to a change in the price of the commodity or service, while other factors are held constant; it is known as extension/contraction of supply. When this phenomenon is represented geometrically, we move from one point to another point along the same curve. Hence extension or contraction of supply is also named as movement along with the supply curve. Now we discuss changes in Qs in detail: Extension of Supply Higher quantity supplied due to … [Read more...] about Extraction and Contraction of Supply
The 4 Price Elasticity of Demand Measurement Techniques
Lord Kelvin, a well known English scholar, says that: “Your knowledge is of meager and unsatisfactory kind if you cannot measure what you are speaking about.” We must know some methods to measure elasticity of demand to reflect our sound knowledge about this concept. This credit goes to Marshall that he has introduced the concept of “unity” which serves as benchmark to measure elasticity of demand. Generally we observe the following three possibilities of degrees of elasticity of … [Read more...] about The 4 Price Elasticity of Demand Measurement Techniques
Cause of the Growth of the State Business Ownership
It involves all those business, trade and industrial activities which are carried on under the ownership and management of the government. It is desired by every Govt. for the purposes of safeguarding the public interest. It is regarded most essential to promote the welfare of the country. The state enterprises are conducted by government or semi-government organization and public or statutory corporation. All the public utility programs are particularly served by the state ownership … [Read more...] about Cause of the Growth of the State Business Ownership
Canon of Taxation
According to Phillips Hardwick, “Taxes are compulsory transfers of money from private individuals, groups or institutions to the Government.” Comprehensive Definition Tax is a compulsory amount levied by the state on its individuals to meet the development and non-development expenditures of government. ndividuals can not demand any social benefits by paying these payments. Though taxation provides funds to the Govt. on one side and it curtails consumption and investment spending on … [Read more...] about Canon of Taxation
Types of Taxes
Basically there are two types of taxes i.e. direct taxes and indirect taxes. However, there are further types of direct and indirect taxes. A brief list of both the major taxes is as under: Types of Direct Taxes Proportional taxesProgressive taxesRegressive taxesDigressive taxes Types of Indirect Taxes Specific taxesAdvalorem taxesValue added taxes Direct Taxes The taxes for which the burden of taxes cannot be transferred, are called direct taxes. According to H.Dalton, “A … [Read more...] about Types of Taxes
History of Income Tax Law in Pakistan
Promulgation of Income Tax Act, 1922 When Pakistan came into being, the Government of Pakistan promulgated the Income Tax Act, 1922, as amended up to the date for regulating the taxation system in Pakistan. An Applicability of the Income Tax Act, 1922 The provisions of the Act were extended to the whole of Pakistan except the specified areas. Formation of the Taxation Inquiry Committee "A Taxation Inquiry Committee", was introduced in 1958 which was consist of officials and … [Read more...] about History of Income Tax Law in Pakistan