Definition: Unit linked insurance plan (ULIP) is a bundled financial product proposed for those investors who need a life cover as well. It comprises of insurance benefit along with investment opportunity, to serve the dual purpose of safety and wealth maximization to the investors. ULIP was developed in India and is widely known for its tax-saving benefits among the … [Read more...] about Unit Linked Insurance Plan (ULIP)
Wealth Management
Definition: Wealth management is a complete financial assistance package designed for high net worth individuals (HNIs). A wealth manager aims at providing specialized and customized services by developing the most favourable strategy for the client. Wealth management amalgamates the investment portfolio management with other financial services like tax planning, insurance, … [Read more...] about Wealth Management
Types of Contracts
Definition: A contract is nothing but an agreement which is supported by law, i.e., the concerned parties have to necessarily fulfil their obligations as they are lawfully enforced to do so. Every contract emerges out of an agreement where the two parties promise each other to meet their duties effectively. No trade practice or business activity is possible without entering … [Read more...] about Types of Contracts
Human Resource Planning (HRP)
Definition: Human resource planning (HRP) is a constant practice of filling the gap between the requirement and availability of the manpower in an organization. It ensures the proper blend of skills, knowledge, experience and capabilities in the workforce composition. For instance; in one of the most crowded outlets of a restaurant chain, seven out of eighteen service staff … [Read more...] about Human Resource Planning (HRP)
Deferred Tax Asset (DTA)
Definition: Deferred tax asset (DTA) refers to the excess tax paid or carried forward by the company in the current year as per the income tax provisions. However, such excess tax amount does not get recognition in the books of accounts during the same period. To accurately record this tax difference in the books, an intangible asset is created. In simple terms, the taxable … [Read more...] about Deferred Tax Asset (DTA)
HR Report
Definition: HR report can be defined as the summary of personnel data maintained on a monthly or annual basis. It helps the human resource managers to establish or identify the relevant patterns and correlations within this massive information pool. When the companies frame various business strategies, the HR reports act as a useful tool for crucial decision-making. For … [Read more...] about HR Report
Breach of Contract
Definition: Breach of contract refers to the termination of a contract (whether in written, oral or implied form), after one of the contracting parties, fail to meet its part of contractual terms. Such a non-compliance is usually unjustifiable from the side of the breaching party. Some of the other reasons include incomplete performance, delay in payment, failing to … [Read more...] about Breach of Contract
Contract
Definition: A contract can be stated as an agreement which is legally enforceable on both the parties involved in it. We can say that any of the party concerned can redress to the court of law on non-fulfilment of the contractual obligations by the other party. Thus, a contract has three essential components: Offer or Proposal: made by the offeror; Acceptance: … [Read more...] about Contract
Capital Rationing
Definition: Capital rationing is a financial approach applied by the organizations to pick the utmost profitable projects out of all the investment opportunities available. It enables the organizations to determine an optimal capital budgeting and adequate capital expenditure, in the long run. This a useful practice since the organizations usually have limited availability … [Read more...] about Capital Rationing
Matrix Organizational Structure
Definition: A matrix organizational structure is the arrangement of the personnel, i.e., the matrix leader, managers and employees, across the grid, such that a hybrid hierarchy is maintained. Here, there is a vertical and horizontal flow of direction and information, such that each subordinate has dual bosses. Out of these, one is the functional manager; and the other is the … [Read more...] about Matrix Organizational Structure