Fundamental concepts, principle of economicsShompa Nandi
Fundamental Concept or Principle of Economics, Opportunity cost principle, Equi-marginal principle, incremental principle, discounting principle, Risk and uncertainty, Time Perspective
This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
A simple and comprehensive presentation on Profit maximization v/s Wealth Maximization.
By Arvinder Pal Kaur
Faculty of Management
Northwest Group of Institutions
Dhudhike, MOGA
Fundamental concepts, principle of economicsShompa Nandi
Fundamental Concept or Principle of Economics, Opportunity cost principle, Equi-marginal principle, incremental principle, discounting principle, Risk and uncertainty, Time Perspective
This PPT contains the full detail of topic leverage in financial management
it covers following topics :-
Meaning of Leverage
Types of Leverage
Operating Leverage
Financial Leverage
Difference between Operating & Financial Leverage
Combined Leverage
Illustrations
Exercise
A simple and comprehensive presentation on Profit maximization v/s Wealth Maximization.
By Arvinder Pal Kaur
Faculty of Management
Northwest Group of Institutions
Dhudhike, MOGA
A firm is a Business unit which owns,controls and manages a plant.Such a Business unit may be a sole Proprietor,a partnership,a company or a cooperative enterprise.The Firm is the owner of the plant and it controls the operation of plants.
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Afridi Hasan
Shahidul Islam
Aminul Islam Milon
Md. Maznur Rahman
Abdullah Al Mamon
What's Behavior of an Organization
Who will take the Decisions
How decision will be taken
Type of organizations
Why different theories in Organizational Behavior were developed
Basic Concepts of Economics: Introduction to Economics , Basic Economic Problem, Circular Flow of
Economic Activity , Adam Smith and Invisible Hand. Nature of the firm - rationale, objective of maximizing
firm value as present value of all future profits, maximizing, satisficing, optimizing, principal agent problem,
Accounting Profit and Economic Profit , Role of profit in Market System
Demand Analysis and Forecasting: Determinants of Market Demand at Firm and Industry level –
Elasticity of Demand - Market Demand Equation – Use of Multiple Regression for estimating demand –
Case study on estimating industry demand (formulating equation and solving with the aid of software
expected)
Demand and Supply: Market Equilibrium – Pricing under perfect competition, monopolistic competition,
Case study on pricing under monopolistic competition , Oligopoly - product differentiation and price
discrimination; price- output decision in multi-plant and multi-product firms.
Cost Concepts: Cost Concept, Opportunity Cost, Marginal, Incremental and Sunk Costs, Cost Volume Profit
Analysis, Breakeven Point, Case Study on marginal costs. Risk Analysis and Decision Making: Concept of
risk, Expected value computation, Risk management through Insurance, diversification, Hedging, Decision
Tree Analysis, Case Study on Decision tree Technique.
Money and Capital Markets in India: Role and Functions of Money Markets, Composition of Money
Market, Money Market Instruments , Reserve Bank of India – Functions , Regulatory Role of RBI w.r.t.
Currency, Credit and Balance of Payment, Open Market Operations. Role and Functions of Capital Markets,
Composition of Capital market, Stock Exchanges in India, Role of SEBI, understanding of stock market
quotations in financial press expected.
Public Finance Infrastructure: Familiarity with important terms/agencies/approaches/practices related to
National Income (such as GDP, PPP, Growth Rate), Foreign Trade (such as GATT, WTO) Union budget
(such as Revenue Account, Capital Account, Revenue Deficit, Fiscal Deficit, Plan and Non-plan expenditure)
is expected. Understanding of Summarize
Details about the Business size, Government, Employee, Supplier, Banks, Investors, Customers, competitors and Community, Methods ,Methods of measuring business size, small businesses , large businesses, and family businesses.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
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Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
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6. Baumol’s Sales Maximization
SALES MAXIMISATION
According to Baumol, with the separation of ownership
and control in modern corporations, managers seek
prestige and higher salaries by trying to expand company
sales even at the expense of profits.
The objective of sales maximization with minimum profit
can be easily understood with the Fig. Where:
TC- Total Cost.
TR- Total Revenue.
TP- Total product.
Sales maximize where Average cost = Average Revenue.
As you can see in next slide..
8. Sales maximization is not only a means but an end in
itself.
He gives a number of arguments is support of his theory.
According to him, a firm attaches great importance to the
magnitude of sales and is much concerned about
declining sales.
If the sales of a firm are declining, banks, creditors and
the capital market are not prepared to provide finance to
it. Its own distributors and dealers might stop taking
interest in it. Consumers might not buy its products
because of its unpopularity. But if sales are large, the size
of the firm expands which, in turn, means larger profits.
10. Profit Maximization
Traditionally it is the main objective of a firm. According to
this a firm prefers to produce at that point where it can make
maximum of profit. To gain that level of production a firm
may follow to different rules i.e. total revenue, total cost rule
and marginal cost marginal revenue rule.
According to the total revenue and total cost method, a firm
produces to that extent where there is a maximum difference
between total revenue and total cost.
11. According to marginal cost and marginal revenue
rule, a firm produces to that extent where
marginal revenue and marginal cost are equal.
Before the equilibrium output MR is more than the
MC and a firm which wants to maximize its profit
wants to earn every profit on each and every unit. It
wants to earn maximum profit on the whole.
13. CRITICISM
HOWEVER, IN PRACTICE IT IS NOT POSSIBLE FOR A FIRM TO
MAKE MAXIMUM OF THE PROFIT IN THE LONG RUN DUE TO
FOLLOWING REASONS.
1. Firstly, firms do not make maximum profit because it may attract
new firms, hence competition will be increased.
2. Secondly, firms are reluctant to make maximum profit to avoid
government watch dogs And greater risk of investigation which
involves huge cost.
3. Thirdly, it may damage the relationship between stakeholders,
such as consumers and workers.
4. Fourthly, it may be possible to the certain scale of production, but
it is difficult to calculate MR and MC in mass production.
Profit maximization is also not possible in service sector
14.
15. Williamson’s Utility Maximization:
Williamson has developed managerial utility-
maximisation objective as against profit maximization.
In large modem firms, shareholders and managers are
two separate groups. The former want maximum return
on their investment and hence the maximization of
profits
The managers, on the other hand, have consideration
other than profit maximization in their utility functions.
Thus the managers are interested not only in their own
emoluments but also in the size of their staff and
expenditure on them.
16. CONT….
Thus Williamson’s theory is related to the
maximization of the manager’s utility which is a
function of the expenditure on staff and
emoluments and discretionary funds. “To the
extent that pressure from the capital
market and competition in the product
market is imperfect, the manager,
therefore, has discretion to pursue goals
other than profits.”
17.
18. MARRIS GROWTH MAXIMIZATION:
Robin Marris in his book The Economic Theory of
‘Managerial’ Capitalism (1964) has developed a dynamic
balanced growth maximizing theory of the firm.
The managers aim at the maximization of the growth rate
of the firm and the shareholders aim at the maximization of
their dividends and share prices.
To establish a link between such a growth rate and the
share prices of the firm, Marris develops a balanced growth
model in which the manager chooses a constant growth
rate at which the firm’s sales, profits, assets, etc., grow.
19. Cont…
• As the managers are concerned more about their job
security and growth of the firm, they will choose that
growth rate which maximizes the market value of
shares, give satisfactory dividends to shareholders, and
avoid the take-over of the firm.
• On the other hand, the owners (shareholders) also
want balanced growth of the firm because it ensures
fair return on their capital. Thus the goals of the
managers may coincide with that of owners of the firm
and both try to achieve balanced growth of the firm.
20. Marris’ growth-maximization theory has
been severely criticised for its over-
simplified assumptions.
1. It ignores the problem of oligopolistic interdependence of
firms.
2. The model assumes that firms can grow continuously by
creating new products. This is unrealistic because no firm
can sell anything to the consumers. After all, consumers
have their preferences for certain brands which also change
when new products enter the market.
3. The assumption that all major variables such as profits, sales
and costs increase at the same rate is highly unrealistic.
4. It is also doubtful that a firm would continue to grow at a
constant rate, as assumed by Marris. The firm might grow
faster now and slowly later on.