Studentsopedia

  Special Financial Institutions After independence a large number of financial institutions have been established in India with the primary objective of providing long-term financial assistance to industrial enterprises. Some of these institutions have been set up on the initiative of the Central Government, while others have been set up in different states on the initiative of the concerned State Governments. Thus, there are all-India institutions like Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICIC1), Industrial Development Bank of India (IDBI), and Industrial Reconstruction Corporation of India (IRCI). They mainly provide long-term finance for large companies. On the other hand, at the state level there are State Financial Corporations (SFCs) and Industrial Development Corporations (SIDCs). These state level institutions mainly provide long-term finance to relatively smaller companies. These institutions (both nation...

  UNDERWRITING We have already mentioned that development banks and financial institutions underwrite the issue of shares and debentures of public limited companies. Besides, investment trusts, stock-brokers, issue houses and other similar organisations also underwrite the public issue of shares and debentures. Those who underwrite security issues are known as Underwriters. Let us study in detail about underwriting. What is underwriting? Before issuing the prospectus inviting public subscription for shares and debentures, the promoters of a company generally make arrangements whereby public response to the issue may be encouraging. Otherwise, the promoters cannot be sure the shares or debentures would be fully or substantially subscribed by the public finance would he available. Similarly, when any existing company to raise additional finance by issuing shares or debentures, it has to be reasonably sure that there is adequate response to the issue. Underwriting refers to an...

  CAPITAL STRUCTURE You have noticed that borrowing is desirable when profits are high. But it may be dangerous to depend on loans when profits decline. Then what should be the amount of borrowing for financing business activities? The general principle is to maintain borrowed capital and owners' capital in proper proportions. For a very successful business in favourable conditions, borrowed capital may be twice or even thrice as large as owners' investment. But for a business which is suffering from declining profits, the proportion of borrowed capital should be as low as possible. Since borrowing of funds has distinct advantages, you may expect promoters to raise as large an amount as possible through loans. But beyond a certain limit borrowing may be risky. This is because fluctuation in earning and inadequacy of available cash could lead to a situation where.it may not be possible for the business to pay interest and repay the amount of loan. In that case, the financial pos...

  COMMERCE We know that the business activities are classified into: I) industry, and 2) commerce . We also know that the industrial activities are concerned with the production of want satisfying goods and services. Unless these goods and services are trade available to those who need them, they may not fulfil their objectives i.e., satisfying human wants. Therefore, the goods produced by the industries should be made available to the consumers at right place, right time, right quantity, right price and in right manner. Here comes the activity of commerce to fulfil all these requirements. All the activities which establish link between the producers of goods and consumers of these goods, and maintain a smooth and uninterrupted flow of goods between them come under commerce. A smooth and uninterrupted flow of goods and services from producer to consumer is beset with many barriers and hindrances. For instance, goods produced by one may be consumed by another. In such a case, unle...

Functions of Money Money is anything that is widely accepted in exchange for goods and services and payment of debts. Money has three main functions or services that it provides. It serves as a medium of exchange, store of value, and as a unit of account. Following points highlight some basic functions of money: The medium of exchange. Earlier before, the introduction of the money barter system existed. i.e. exchange of one commodity for other irrespective of their desire to get it or not. There is, however, a small chance of double coincidence of wants. But Money virtually eliminates the problem by serving as a medium of exchange. As a medium of exchange, it is accepted in all transactions by all parties, regardless of whether they desire each other’s goods and services. Store of value. Money's other essential function is the store of value. Money is more liquid than most other value stores because it is readily accepted everywhere as a medium of exchange. Money ...

  A number of system administrators keep businesses running; each one is as important as the next. They keep systems up and running, allowing us to keep doing our jobs, including Office 365 administrators. Office products have long dominated much of the business technology used across industries and departments. Microsoft Office 365 is a subscription-based service that gives users access to modern Office tools and other services such as Teams, Groups, and more. A cloud-based infrastructure helps organizations organize and share data, ensuring that the correct data is available to the right person at the right time. We've compiled a list of frequently asked Office 365 Interview Questions and Answers based on our own experience and feedback from people who have cleared Technical Interviews in large IT organizations. This article was written with industry professionals' assistance and covered all current competencies. It will assist you in answering the interview questions.  ...