Business economics is the study of applying economic theory and tools of analysis to operational and strategic decision making by managers of private firms. It uses microeconomic and macroeconomic concepts to help managers solve problems related to demand analysis, production costs, pricing, investment decisions, and risk under conditions of uncertainty. The scope of business economics is wide, covering both internal issues related to operations that can be addressed using microeconomics, as well as external environmental factors analyzed using macroeconomic tools.
UNIT - I: INTRODUCTION TO BUSINESS ECONOMICS: Definition - Nature and Scope -
The Role of economists in an organization; BASIC ECONOMIC PRINCIPLES: The concept
of Opportunity Cost - Discounting principle - Time perspective - Incremental Concept –
Equi-Marginalism; OBJECTIVES OF THE FIRM: Profit Maximization - Sales Maximization
and other objectives.
UNIT - I: INTRODUCTION TO BUSINESS ECONOMICS: Definition - Nature and Scope -
The Role of economists in an organization; BASIC ECONOMIC PRINCIPLES: The concept
of Opportunity Cost - Discounting principle - Time perspective - Incremental Concept –
Equi-Marginalism; OBJECTIVES OF THE FIRM: Profit Maximization - Sales Maximization
and other objectives.
Basic principles in the application of managerial economicsMilan Verma
Basic Principles in the Application of Managerial Economics, what is economics and introduction, Micro economics
Normative (prescriptive) science, Pragmatic (Practical), Uses Macro economics, Uses theory of firm, Management oriented, Multi disciplinary, Art and science. Scope of Managerial Economics, theory of demand and demand analysis, envirmental issues, Significance of managerial economics in decision making, Significance of managerial economics in decision making
Educaterer India is an unique combination of passion driven into a hobby which makes an awesome profession. We carve the lives of enthusiastic candidates to a perfect professional who can impress upon the mindsets of the industry, while following the established traditions, can dare to set new standards to follow. We don't want you to be the part of the crowd, rather we like to make you the reason of the crowd.
Today's Effort For A Better Tomorrow
Economics is the study of this allocation of resources, the choices that are made by economic agents. An economy is a system which attempts to solve this basic economic problem. There are different types of economies; household economy, local economy, national economy and international economy but all economies face the same problem. The major economic problems are (i) what to produce? (ii) How to produce?
Economics is the study of how individuals and societies choose to use the scarce resources that nature and the previous generation have provided. The world‟s resources are limited and scarce. The resources which are not scarce are called free goods. Resources which are scarce are called economic goods.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Basic principles in the application of managerial economicsMilan Verma
Basic Principles in the Application of Managerial Economics, what is economics and introduction, Micro economics
Normative (prescriptive) science, Pragmatic (Practical), Uses Macro economics, Uses theory of firm, Management oriented, Multi disciplinary, Art and science. Scope of Managerial Economics, theory of demand and demand analysis, envirmental issues, Significance of managerial economics in decision making, Significance of managerial economics in decision making
Educaterer India is an unique combination of passion driven into a hobby which makes an awesome profession. We carve the lives of enthusiastic candidates to a perfect professional who can impress upon the mindsets of the industry, while following the established traditions, can dare to set new standards to follow. We don't want you to be the part of the crowd, rather we like to make you the reason of the crowd.
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Economics is the study of this allocation of resources, the choices that are made by economic agents. An economy is a system which attempts to solve this basic economic problem. There are different types of economies; household economy, local economy, national economy and international economy but all economies face the same problem. The major economic problems are (i) what to produce? (ii) How to produce?
Economics is the study of how individuals and societies choose to use the scarce resources that nature and the previous generation have provided. The world‟s resources are limited and scarce. The resources which are not scarce are called free goods. Resources which are scarce are called economic goods.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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3. Economics is the study of the processes by which the relatively scarce
resources are allocated to satisfy the competing unlimited wants of
human beings in a society.
It also deals with the processes by which the productive capacity of these
resources is increased and with the factors which, in the past, have led to
sharp fluctuations in the rate of utilisation of these resources.
In the day-to-day events, we come across several economic issues such
as changes in the price of individual commodities as well as in the
general price level, economic prosperity and higher standards of living of
some countries despite general poverty and poor standards of living in
others.
The tools of Economics chooses the best among the different alternative
courses of action available to the decision maker.
Presentation title 3
4. Meaning of business economics
Decision making refers to the process of selecting an appropriate alternative that
will provide the most efficient means of attaining a desired end, from two or
more alternative courses of action.
It involves evaluation of feasible alternatives, rational judgment on the basis of
information and choice of a particular alternative which the decision maker finds
as the most suitable.
The more efficient alternatives must be choosen and less efficient
alternative must be rejected.
Presentation title 4
5. Decisions making is not simple and straightforward as the economic environment in which the firm
functions is highly complex and dynamic.
The problem occurs because , most of the time, decisions are to be taken under conditions of
imperfect knowledge and uncertainty.
The theories of Economics provide the tools which explain various concepts such as demand, supply,
costs, price, competition etc., Business Economics applies these tools in the process of business
decision making.
Business Economics has close connection with Economic theory (micro as well as macro economics)
operations Research, Statistics, Mathematics and the Theory of Decision-Making.
Business Economics is also useful for managers of ‘not-for-profit’ organizations such as NGO, and
voluntary organisations .
Presentation title 5
6. Definitions of business
economics
Presentation title 6
Joel Dean defined Business Economics in terms of the use of
economic analysis in the formulation of business policies.
Business Economics is essentially a component of Applied
Economics as it includes application of lected quantitative
techniques such as :
• linear programming
• regression analysis
• capital budgeting
• break even analysis
• cost analysis
This text is to focus on the heart of Business Economics i.e.
the Micro Economic Theory of the behaviour of consumers
and firms in competitive and not-competitive markets.
It provides with a basic framework for making key business
decisions about the allotion of scarce resources.
8. Presentation title 8
1. Business economics is a science- Science as a
systematic body of knowledge and it is based on
methodological observations. Similarly, Managerial
Economics is also a science of making decisions and
finding alternatives, keeping the scarce of resources
in mind.
2. 2. Based on micro economics- In managerial
economics, problems of a particular organization
are looked upon rather than focusing on the whole
economy. Therefore it is termed as a part of
microeconomics.
3. 3. Incorporates elements of macro economics-
Managerial Economics uses the concepts of
macroeconomics to solve problems. Managers
analyze the macroeconomic factors like market
conditions, economic reforms, government policies
to understand their impact on the organization.
9. • Business economics is also an art- Managerial Economics requires a lot of creativity and logical thinking to
come up with a solution. A managerial economist should possess the art of utilizing his capabilities,
knowledge, and skills to achieve the organizational objective.
• Uses theory of markets and private enterprises- It uses the theory of the firm and resource in the
backdrop of private enterprise economy.
• Pragmatic in approach- Managerial economics is a tool in the hands of managers that aids them in finding
appropriate solutions to business-related problems and uncertainties. As mentioned above, managerial
economics also helps in goal establishment, policy formation, and effective decision making. It is a practical
approach to find solutions.
• Interdisciplinary in nature- Business Economics incorporates tools from many other disciplines like
mathematics, statistics, accounting, marketing, etc. Therefore, it is interdisciplinary in nature.
• Normative in nature- Economic theory has developed along two lines – positive and normative. A positive
or pure science analyses cause and effect relationship between variables in an objective and scientific
manner, but it does not involve any value judgement. Business Economics is generally normative or
prescriptive in nature. It suggests the application of economic principles with regard to policy formulation,
decision-making and future planning.
Presentation title 9
10. SCOPE OF BUSINESS
ECONOMICS
Presentation title 10
The scope of Business Economics is quite wide. It covers most of the practical
problems a manager or a firm faces.
There are two categories of business issues to which economic theories can
be directly applied, namely:
1. Internal issues or operational issues (this can be solved using Micro
Economics)
2. External issues or environmental issues (this can be solved using Macro
Economics)
11. Presentation title 11
1. Microeconomics applied to Internal or Operational Issue
Operational issues include all those issues that arise within
organization and fall within the purview and
control of the management.
Demand Analysis and Forecasting: Demand analysis
pertains to the behaviour of consumers in the
market. It studies the nature of consumer
preferences and the effect of changes in the
determinants of demand such as, price of the
commodity, consumers’ income, prices of related
commodities, consumer tastes and preferences etc.
Production and Cost Analysis: Production theory
explains the relationship between inputs and
output. A business economist has to decide on
the optimum size of output, given the objectives
of the
firm. He has also to ensure that the firm is not
incurring undue costs.
Inventory Management: Inventory management
theories pertain to rules that firms can use to
minimise the costs associated with maintaining
inventory in the form of ‘work-in-process,’ ‘raw
materials’, and ‘finished goods’. Inventory policies
12. Market Structure and Pricing Policies: Analysis of the structure of the market provides information about the nature and
extent of competition which the firms have to face.This helps in determining the degree of market power (ability to
determine prices)which the firm commands and the strategies to be followed in market management under the given
competitive conditions such as, product design and marketing.
Presentation title 12
Resource Allocation: Business Economics, with the help of advanced tools such as linear
programming, enables the firm to arrive at the best course of action for optimum
utilisation of available resources.
Theory of Capital and Investment Decisions: For maximizing its profits, the firm has to
carefully evaluate its investment decisions and carry out a sensible policy of capital allocation.
Profit Analysis: Profits are, most often, uncertain due to changing prices and market
conditions. Profit theory guides the firm in the measurement and management of profits
under conditions of uncertainty. Profit analysis is also immensely useful in future profit
planning.
Risk and Uncertainty Analysis: Business firms generally operate under conditions of risk and
uncertainty. Analysis of risks and uncertainties helps the business firm in arriving at efficient decisions
and in formulating plans on the basis of past data, current information and future prediction.
13. 2. Macroeconomics applied to External or Environmental Issues
Environmental factors have significant influence upon the functioning and performance of
business. The major macro-economic factors relate to:
♦ The type of economic system
♦ Stage of business cycle
♦ The general trends in national income, employment, prices, saving and investment.
♦ Government’s economic policies like industrial policy, competition policy, and fiscal policy,
foreign
trade policy and globalization policies.
♦ Working of central banks and financial sector and capital market and their regulation.
♦ Socio-economic organisations like trade unions, producer and consumer unions and
cooperatives.
♦ Social and political environment.
Presentation title 13