Definition: Inventory management techniques can be seen as a useful tool in the hands of the management. It ensures the availability of the right type of stock, at the right time, at the right place and in the desired quantity. It also enables the managers to match the inventory shown in the books of accounts with that available. Example: A garment manufacturing industry … [Read more...] about Inventory Management Techniques
Zero-Coupon Bond
Definition: A zero-coupon bond, as the name suggests, it is a financial instrument which does not allow a regular interest payment to the investor. Moreover, it is a bond which is issued at a meagre market price (discounted price) in comparison to its face value. And it is redeemable on or after a specified maturity date at the par value itself. It is known by many names … [Read more...] about Zero-Coupon Bond
Inventory Management
Definition: Inventory management is an approach for keeping track of the flow of inventory. It starts right from the procurement of goods and its warehousing and continues to the outflow of the raw material or stock to reach the manufacturing units or to the market, respectively. The process can be carried out manually or by using an automated system. When the goods arrive … [Read more...] about Inventory Management
Case Study on Entrepreneurship
Definition: Entrepreneurship is the process of establishing a practically viable business model on the grounds of an innovative concept. It is the emergence of a new era by way of research and development. An entrepreneur is not an ordinary businessman. But, he/she is someone who introduces a new idea, technology or product to the world. Wantrepreneurs think of evolving as … [Read more...] about Case Study on Entrepreneurship
Dividend Policy
Definition: A dividend policy can be defined as the dividend distribution guidelines provided by the board of directors of a company. It sets the parameter for delivering returns to the equity shareholders, on the capital invested by them in the business. While taking such decisions, the company has to maintain a proper balance between its debt and equity … [Read more...] about Dividend Policy
Venture Capitalist Vs Angel Investor
When we think of startup funding, we encounter the two very similar but incredibly different types of lenders, i.e., venture capitalist and angel investor. The significant dissimilarity between the two is that the former is a venture capital firm which invests the money of its customers. Whereas, the latter is an individual who is financially well versed and use his/her own … [Read more...] about Venture Capitalist Vs Angel Investor
PERT Analysis
Definition: PERT or Project Evaluation and Review Technique can be understood as a tool for handling programmes and projects which involve a series of activities. It supports the analysis of these actions and their sequential arrangement, along with determining the proposed duration required for completing each of these tasks with the help of drafting a critical path, is termed … [Read more...] about PERT Analysis
Porter’s Value Chain
Definition: Porter's value chain or VCA (Value Chain Analysis) refers to the analysis and planning of a series of business activities (primary and secondary). These activities should be executed in such a manner that it adds value or utility to the customer experience from their purchase of products or services. A known American Economist, Michael Eugene Porter first stated … [Read more...] about Porter’s Value Chain
Howard Sheth Model
Definition: The Howard Sheth Model is an approach for analyzing the combined impact of the social, psychological and marketing factors on the buying behaviour or preference of the consumers and the industrial buyers into a logical order of information processing. John Howard and Jagadish Sheth introduced the Howard Sheth Model in the year 1969. The concept was published in … [Read more...] about Howard Sheth Model
Price Sensitivity
Definition: Price sensitivity refers to the degree or extent to which the consumer's buying behaviour varies with the change in the price of the product or service. In simple terms, it determines the level to which buyers or consumers are conscious about the price of a particular product or service. It is also termed as price elasticity of demand, which shows the effect of … [Read more...] about Price Sensitivity