Definition: Techniques of Controlling are the tools used for establishing control over business activities, monitoring and taking necessary corrective measures. There are several Traditional and Morden techniques available for efficient business control. The selection of the techniques must be a strategic approach. While selecting the most suitable technique, the … [Read more...] about Techniques of Controlling
Staffing Process
Definition: The Staffing Process is a series of activities performed to employ, manage and retain the manpower inventory to accomplish organizational goals. It ensures the availability of the most suitable person for the Right Job at the Right Time. It covers various interrelated activities required to fill the vacancies designed in the organizational structure. Besides … [Read more...] about Staffing Process
Location Decision
Definition: Location Decision in operation management is finding an ideal geographical region to install a Facility or Plant. It is a vital component in facility planning as it greatly impacts the organization's Profitability, Cost and Success. In other words, the decision about the area for locating a facility is the Location Decision. It is also termed as Facility Location … [Read more...] about Location Decision
Debenture Redemption Reserve
Definition: Debenture Redemption Reserve (DRR) is a reserve created to designate a portion of the company's divisible profits, used during the Redemption of Debentures. It acts as a shield against the default in payment to the debenture holder from the company's end at the due date. The goal behind the creation of DRR is to cut the risk of fund shortage on Redemption. As the … [Read more...] about Debenture Redemption Reserve
Liquidity Preference Theory
Definition: Liquidity Preference Theory implies that Interest is an economic event determined by two factors, i.e. the Demand for Money and the Supply of Money. The great economist Lord Keynes gave this theory for Interest rate determination. Conventionally, classical theorists suggested that people only use the money for transaction motives. They keep the money to meet … [Read more...] about Liquidity Preference Theory
Redemption of Debentures
Definition: Redemption of Debentures is the reimbursement of the amount due to the debenture holder at its maturity. The Redemption includes a refund of the principal amount along with the amount of interest due on it. Companies might redeem the debentures at par and premium. The debentures are the funds that the company borrows. Therefore, it is a liability for the company. … [Read more...] about Redemption of Debentures
Forfeiture of Shares
Definition: Forfeiture of shares is the annulment (cancellation) of the shares owned by a shareholder as a penalty because of the non-payment of allotment and calls due to the company. Along with the shares, the amount already paid to the company also get forfeited. The company can either Dispose of or Reissue the forfeited shares. Post forfeiture, the company removes … [Read more...] about Forfeiture of Shares
Single Entry System
Definition: Single Entry System is the hybrid and unscientific bookkeeping method that partially records business transactions. More precisely, it records only a single aspect of the financial transactions and excludes the idea of duality. Small businesses generally use this system of bookkeeping. Because these businesses can't afford to hire a professional accountant for … [Read more...] about Single Entry System
Internal Reconstruction
Definition: Internal reconstruction is the rearrangement of the company's existing capital structure. More precisely, it involves a change in the financial structure by Alteration or Reduction. The reorganization takes place without liquidation. So, there is no need to dissolve the existing venture. Thus, the formation of a new company is not needed. An internal … [Read more...] about Internal Reconstruction
Dispute Resolution
Definition: Dispute Resolution refers to a process through which two parties can come together and build a consensus to end the conflict. Another term for the same is Conflict Resolution. But it is a broader term that covers severe matters. Dispute Resolution covers all the methods of managing disputes. Also, this process requires plenty of time and energy. Another … [Read more...] about Dispute Resolution