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The Investors Book

Learn about Investing & Business related terms

Anjali J

Indifference Curve

Definition: An indifference curve is a convex shaped curve depicting the graphical representation of the different combinations deriving the same level of satisfaction to the consumer by considering two commodities. It functions on the principle of the diminishing marginal rate of substitution (MRS). Example: A person went to the grocery store to buy cereals and … [Read more...] about Indifference Curve

Moral Suasion

Definition: Moral suasion is a step taken by the central bank for convincing and advising the commercial banks to adhere to the policies and act in the desired manner through general interaction. 'Moral' means defining one's code of conduct based on a clear distinction between right and wrong. 'Suasion' refers to the process of advising, convincing or influencing others without … [Read more...] about Moral Suasion

Cost Classification

Definition: Cost classification is the logical process of categorising the different costs involved in a business process according to their type, nature, frequency and other features to fulfil accounting objectives and facilitate economic analysis. Cost refers to the value sacrificed with the aim of gaining something in return. Every business process involves some cost. It is … [Read more...] about Cost Classification

Cost Accounting

Definition: Cost accounting is the accounting method for ensuring cost-effectiveness by accumulating, organising, recording, calculating, analysing and assessing the overall expenses incurred on a product, process or project, etc. It is mostly used in industrial units or factories where the goods are manufactured. Unlike financial accounting, cost accounting is a broader … [Read more...] about Cost Accounting

Opportunity Cost

Definition: Opportunity cost refers to the value of the other choice sacrificed while choosing a better or suitable alternative. It is also termed as alternative cost. There are limited resources or limited spending capacity and to direct these resources in the direction of deriving maximum satisfaction, we find out the opportunity cost. Example: Let us now understand the … [Read more...] about Opportunity Cost

Marketing Mix

Definition: Marketing mix is a tool for ensuring a successful marketing process by analysing the consumer's need, determining the cost to be incurred on the product or service, deciding a proper distribution channel, communicating the product idea and information to the customers, developing a strong marketing team, channelizing the marketing activities and adjusting to the … [Read more...] about Marketing Mix

Marketing

Definition: Marketing is the process of converting prospective buyers into actual customers by communicating complete information of the product or services to the customer. The key elements which are the secret to a successful marketing practice are thorough market survey and research, framing a competitive strategy, designing a realistic marketing plan and implementing … [Read more...] about Marketing

Business Activities

Definition: Business activities refer to all the economic activities, whether directly or indirectly related to making the goods and services available to the consumer and ensure profit earning through customer satisfaction. All the business activities depend on each other to ensure constant process and cannot serve the purpose of customer satisfaction solely. Example: A … [Read more...] about Business Activities

Business

Definition: Business is a regular process of earning a profit by satisfying consumer's needs through the manufacturing of goods, reselling of products, providing services or carrying out all three together. It is an occupation which requires a particular set of skills and expertise to derive maximum profit out of it. Following activities cannot be considered as a … [Read more...] about Business

Kiosk Banking

Definition: Kiosk banking was introduced by the Reserve Bank of India(RBI) to facilitate primary banking services to the poor and low-income group localities at a reasonable cost without the need for visiting the bank. KIOSK is 'Kommunikasjon Integrert Offentlig Service Kontor'. It is an initiative to benefit the poor section of the society who usually are daily wage … [Read more...] about Kiosk Banking

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