Finance – Stock Valuation
Finance – Stock Valuation Stock valuation is one of the important studies in Finance. It is the study of the various methods in which the stocks of the companies are calculated. The reason behind the calculation or valuation of stock is to predict the value of the stock in the future. There are many ways in which the stocks of a company are calculated. The motive behind the calculation of the value of the stock is to identify which stocks are overvalued and which stocks are undervalued. For taking buying and selling decisions such as when to buy stock or…
Read MoreFinance – Derivatives
Finance – Derivatives A derivative contract is a contractual agreement to execute an exchange at some future date. The term “derivative” arises from the fact that the agreement “derives” its value from the price of an underlying asset such as stock, bond, currency or commodity. A stock index futures derives its value from an underlying exchange rate and so on. The key feature of the transaction specified in a derivative contract is that it will be executed in the future rather than today. One can easily become overwhelmed by the apparently countless types of derivative contracts traded in the market…
Read MoreManagement Accounting Tactical Decision Making
Tactical decision making consists of choosing among alternatives with an immediate or limited end in view. Accepting a special order for less than the normal selling price to utilize idle capacity and increase the year’s profits is an example. Thus, some tactical decisions tend to be short-run in nature. However, it should be emphasized that short-run decisions often have long-run consequences. Considering a second example, suppose that a company is considering producing a component instead of buying it from suppliers. The immediate objective may be to lower the cost of making the main product. Yet, this tactical decision may be…
Read MoreHuman Resources Management- the new role of Human Resources
Human Resources Management- the new role of Human Resources A human resource department must be responsive to both internal organizational changes and external changes in the industry or market place. In an effort to build and maintain a fast, agile company, the department must also be prepared to shift gears at a moment’s notice. By participating with line managers, the human resources department can also help develop policies and procedures that support the company’s business objectives. The strategic transformation of an organization begins with the transformation of the human resources department and its role within the organization. Today’s human resources…
Read MoreHuman Resources Time Management
Human Resources Time Management Time management is considered as one of the most important skills in business. It is essentially about spending the hours and minutes in a day as effectively as possible. Like many areas of business life, good time management is a combination of common sense, with some basic techniques and gaining experience over time in developing good working habits. One question that people often ask is, “why time management should be known”? The answer is very simple. As organizations pay employees money for their time, each unit of time costs money. So, employees hold the responsibility of…
Read MoreUnderstanding Labor Economics
Labor Economics The theory of labor supply is based on the model of a consumer making a choice between consuming more goods and consuming more leisure. With it, we can elucidate the properties of labor supply and begin to understand the conditions of participation in the labor market. The model has been variously enhanced to make the theory of labor supply more precise and sometimes to modify it profoundly, principally by taking into account household production, the collective dimension of decisions about labor supply and the life cycle aspect of these decisions. The basic model of a trade-off between consumption…
Read MorePublic Economics
Public economics is the study of economic policy, with particular emphasis upon taxation. The subject therefore encompasses topics as diverse as responses to market failure due to the existence of externalities and the determination of optimal social security policies. This characterization reflects an extension of the scope of public economics from its initial emphasis upon the collection and disbursement of government revenues to its present concern with all aspects of government economic intervention. Public economics has a long history as a discipline within economics and many eminent economists have written on the subject. For example, Ricardo discussed the effects of…
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