Industrial sickness is defined as"an industrial company which has, at the end of any financial year, accumulated losses equal to, or exceeding, its entire net worth and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year".
Internal causes for sickness:
1) Lack of finance;
2) Bad production policies; 3) Marketing and Sickness;
4) Inappropriate personnel management;
5) Ineffective Corporate management
External causes for sickness:
1) Personnel Constraint;
2) Marketing Constraint;
3) Production Constraint;
4) Finance Constraint;
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A project profile is a simplified description of an eventual project. In addition to defining the purpose and ownership of the project, it presents a first estimate of the activities involved and the total investment that will be required, as well as the annual operating costs and, in the case of income generating projects, the annual income.
It is simplified in a number of senses; costs may still not be well defined, minor items may be excluded, and assumptions as to the demand for the output of the investment, whether it be a childcare facility, a bridge, or canned vegetables, are probably just that – assumptions.
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A job description identifies essential and non-essential tasks that are assigned to a specific position. It also identifies reporting relationships and may also describe required qualifications, minimum requirements, working conditions, and desirable qualifications.
Supervisors are responsible for developing and maintaining accurate and current job descriptions for their staff. The duties should be appropriate for the classification and consistent with the class specification. It is not uncommon for duty statements to vary within the same classification due to the various departmental settings and organizational structures.
A job description is a powerful tool that is used:
1. To communicate the job expectations to the employee
2. To focus recruitment efforts
3. To manage employee performance
4. To set employee and organization goals
5. For workload management
6. For succession planning
7. To create training and development plans
8. For the job evaluation and classification process
9. To establish fair, competitive pay rates for staff members
10. To develop career paths and opportunities for job growth
11. To help maintain compliance with federal regulations
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Management by exception is a style of business management that focuses on identifying and handling cases that deviate from the norm, recommended as best practice by PRINCE2.
Management by exception has both a general business application and a business intelligence application. General business exceptions are cases that deviate from the normal behavior in a business process and need to be cared for in a unique manner, typically by human intervention. Their cause might include: process deviation, infrastructure or connectivity issues, external deviation, poor quality business rules, malformed data, etc. Management by exception here is the practice of investigating, resolving and handling such occurrences by using skilled staff and software tools. Good management can contribute to efficiency of business processes. Often in these cases the process will be called exception management, as exceptional cases are not the sole focus of the managerial policy, and exception management (as opposed to management by exception) denotes a more moderate application of the process.
Management by exception (MBE), when applied to business is a style of management that gives employees the responsibility to take decisions and to fulfill their work or projects by themselves.
It consists of focus and analysis of statistically relevant anomalies in the data. If an unusual situation or deviation in the recorded data appears, which could cause difficulties for the business and can’t be managed by the employee at his level, the employee should pass the decision on to the next higher level.
For example, if all products are selling at their expected volumes for the quarter, except one particular product which is underperforming or overperforming at a statistically relevant margin, only the data for that product will be presented to the managers for further investigation and discovery of the root cause.
Management by exception can bring forward business errors and oversights,
ineffective strategies that need to be improved, changes in competition
and business opportunities. Management by exception is intended to reduce the managerial load and enable managers to spend their time more effectively in areas where it will have the most impact.
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The process by which leaders of an organization determine what it intends to be in the future and how it will get there. To put it another way, they develop a vision for the organization's future and determine the necessary priorities, procedures, and operations (strategies) to achieve that vision.
Included are measurable goals which are realistic and attainable, but also challenging; emphasis is on long-term goals and strategies, rather than short-term (such as annual) objectives. Strategic planning assumes that certain aspects of the future can be created or influenced by the organization.
Strategic planning is ongoing; it is "the process of self-examination, the confrontation of difficult choices, and the establishment of priorities"
Strategic planning involves "charting a course that you believe is wise, then adjusting that course as you gain more information and experience"
Lastly, Strategic planning is a tool for organizing the present on the basis of the projections of the desired future. That is, a strategic plan is a road map to lead an organization from where it is now to where it would like to be in five or ten years.
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Bangladesh Automated Clearing House (BACH), the first ever electronic clearing house has started live operation in Dhaka from 7 October 2010. It has two components
1. Bangladesh Automated Cheque Processing System (BACPS) and
2. Bangladesh Electronic Funds Transfer Network (BEFTN).
Bangladesh Automated Cheque Processing System (BACPS) is the electronic cheque processing of paper based instruments, uses Cheque Imaging and Truncation (CIT) technology. The system supports both intra-regional and inter-regional clearing and is based on a centralized processing centre located in Dhaka and in designated clearing regions.
BACPS participants are all commercial banks and related Government offices.
Country wide use of MICR encoded standardized instruments. These instruments include Cheques, Drafts, Pay Orders, Dividend and Refund Warrants, etc. has been ensured. At present 15,00,000 (approx.) regular and 90,000 high value cheques and other instruments are cleared through BACPS per month.
Almost 90 percent of all the clearing instruments are now being cleared through BACH.
BEFTN is the maiden initiative for electronic (credit and debit) transfer of funds. This network facilitates the transmission of funds between the banks electronically, which makes it faster and efficient means of inter bank clearing over the existing paper based system.
BEFTN is able to handle a wide variety of credit transfer applications such as payroll, foreign and domestic remittances, social security, company dividends, retirement, expense reimbursement, bill payments, corporate payments, government tax payments, veterans’ payments, government license fees and person to person payments as well as debit transfer applications such as mortgage payments, membership dues, loan payments, insurance premiums, utility bill payments, company cash concentration, government tax payments, government licenses and fees.
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The period during which the objects of labor (raw products and materials) remain in the production process, from the beginning of manufacturing through the output of a finished product. In addition to the working time, the production cycle includes interruptions in production owing to physical, chemical, and biological (natural) processes (for example, the period required for tanning leather); the character of the objects of labor; or the technology and organization of production.
An operating cycle is the length of time between the acquisition of inventory and the sale of that inventory and subsequent generation of a profit. The shorter it is, the faster a business gets a return on investment (ROI) for the inventory it stocks. As a general rule, companies want to keep their operating cycles short for a number of reasons, but in certain industries, a long one is actually the norm. These cycles are not tied to accounting periods, but are rather calculated in terms of how long goods sit in inventory before sale.
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Profit planning is the process of developing a plan of operation that makes it possible to determine how to arrange the operational budget so that the maximum amount of profit can be generated. There are several common uses for profit planning, with many of them focusing on the wise use of available resources. Along with the many benefits of this type of planning process, there are also a few limitations.
The actual process of profit planning involves looking at several key factors relevant to operational expenses. Putting together effective profit plans or budgets requires looking closely at such expenses as labor, raw materials, facilities maintenance and upkeep, and the cost of sales and marketing efforts.
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The cash flow statement looks at the past while the cash budget is for planning for the future.
Cash Flow: 1) Cash flow statement shows the cash inflow 2) Preparation done of the past events 3) Use as a tool of analysis & determine likely flow of cash 4) It starts with cash & cash equivalents & end with cash & cash equivalents. 5) Basically, it prepared for financial accounting period.
Cash Budget: 1) All expected cash receipts & estimates 2) Presentation done on forthcoming events 3) Surplus cash receipts planned for profitable investments 4) It starts with cash on hand & banks 5) It may prepared for a month, quarter, half year or annual.
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A hire purchase, also known as a lease purchase, closed-end lease, lease-to-own or rent-to-own, is a business arrangement between a seller and a customer where the customer gets possession and use of the goods in return for a fixed number of specified monthly payments, but the seller retains ownership title rights until the customer has made the final payment. At that point, ownership title passes to the customer.
A hire purchase resembles an installment purchase, but with the crucial difference that title to the property stays with the seller during the hire term. The customer enjoys the economic benefits of ownership but also assumes the risks of damage or loss. The seller is able to account for the hire purchase as the equivalent of a sale. Normally, title to the property passes to the customer at the end of the agreement's term, but a hire purchase also can be structured so the customer takes ownership after a final balloon payment.
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A specialized method of providing structured working capital and term loans that are secured by accounts receivable, inventory, machinery, equipment and/or real estate. This type of funding is great for startup companies, refinancing existing loans, financing growth, mergers and acquisitions, and management buy-outs (MBOs) and buy-ins (MBIs). An example of asset-based finance would be purchase order financing; this may be attractive to a company that has stretched its credit limits with vendors and has reached its lending capacity at the bank.
The inability to finance raw materials to fill all orders would leave a company operating under capacity. The asset-based lender finances the purchase of the raw material, and the purchase orders are then assigned to the lender. After the orders are filled, payment is made to the lender, and the lender then deducts its cost and fees and remits the balance to the company. The disadvantage of this type of financing, however, is the high interest typically charged - which can be as high as prime plus 10%. In the simplest meaning, asset-based lending is any kind of lending secured by an asset. This means, if the loan is not repaid, the asset is taken. In this sense, a mortgage is an example of an asset-backed loan. More commonly however, the phrase is used to describe lending to business and large corporations using assets not normally used in other loans.
Typically, these loans are tied to inventory, accounts receivable, machinery and equipment. This type of lending is usually done when the normal routes of raising funds, such as the capital markets (selling bonds to investors) or normal unsecured or mortgage secured bank lending is not possible. This is usually because the company was unable to raise capital in the normal marketplace or needs more immediate capital for project financing needs (such as inventory purchases, mergers, acquisitions and debt purchasing). It is usually accompanied by higher interest rates, and can be very lucrative for the parent company. For example, the bank Wells Fargo made more money from asset-based lending business than it did the rest of its corporate business (both lending and fee based services). Many financial services companies now use asset-based lending package of structured and leveraged financial services. Most banks, both national investment banks (Goldman Sachs, RBC) and conglomerates (i.e. Citigroup, Wells Fargo), along with regional banks, offer these services to corporate clients.
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A strategic business unit (SBU) is an organizational subunit that acts like an independent business in many major respects, including the formulation of its own strategic plans and its own marketing strategy. An SBU may share its parent organization’s corporate identity or develop its own brand identity, depending on the degrees of freedom allowed to the management of the division.
A one-fit-all strategic approach would be inadequate in large, diversified organizations and multinational companies. Dividing the corporation’s operations into SBUs increases efficiency and market focus and efficiently organizes the business portfolio of a broadly diversified company.
SBUs are found to be a viable form of organizational sectioning because they ensure that products and product lines are given specialized focus, as if they were developed and marketed by an independent company. Products with smaller sales volumes and profit margins than a corporation’s top performers would still be nurtured and promoted by its SBU. The division would focus on a market sector that may be small in comparison but still constitutes a profitable market niche.
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The introductory definition of the marketing environment stated that, “it is the sum of the total of the factors or variables which potentially influence the marketing of a product or service".
In order to expose a list of possible influencing factors, it is necessary to refer to references made to the marketing environment by recognized authors.
It consists of a number of external components (i.e., external sub-environments) which influence the organization’s marketing practices either directly or indirectly. In the first chapter of this book, it is indicated that the evolution of the marketing concept and the stages through which it passed, was an outgrowth of the changes in the surrounding environment. This indicates that examining and responding to the marketing environment is considered an important practice for the success of any organization. It is worthwhile to note that marketing is probably the function that is most influenced by the external environment in an organization.
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Consumerism is the belief that personal wellbeing and happiness depends to a very large extent on the level of personal consumption, particularly on the purchase of material goods. The idea is not simply that wellbeing depends upon a standard of living above some threshold, but that at the center of happiness is consumption and material possessions. A consumerist society is one in which people devote a great deal of time, energy, resources and thought to “consuming”. The general view of life in a consumerist society is consumption is good, and more consumption is even better.
Consumerism --the consumption of goods and services in excess of one’s basic needs, usually in greater and greater quantities --is not a new phenomenon, and early examples of consumerism can be traced back to the fist human civilizations. A significant consumerist tide hit Europe and North America in the mid-18th Century as a result of the Industrial Revolution and the transformation of Western Europe’s and North America’s economies.
The mechanization of a number of processes such as farming freed a certain percentage of the workforce from farming, fuelled both the Industrial Revolution and population growth. As industrialization created the conditions for mass production and mass consumption, for the first time in history, immense quantities of manufactured goods were suddenly available at outstandingly low prices, and thus made available to nearly everyone.
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Customer satisfaction is defined as a customer’s overall evaluation of the performance of an offering to date. This overall satisfaction has a strong positive effect on customer loyalty intentions across a wide range of product and service categories.
The satisfaction judgment is related to all the experiences made with a certain business concerning its given products, the sales process, and the after- sale service. Whether the customer is satisfied after purchase also depends on the offer’s performance in relation to the customer’s expectation. Customers form their expectation from past buying experience, friends’ and associates’ advice, and marketers’ and competitors’ information and promises.
Factors which determine the extent of expectations are: customer needs, total customer value and total customer cost. It is mentioned by researchers who study customer choice that choosing a product or service is only one of the stages customers go through.
There is general agreement that: Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations. Based on this review, customer satisfaction is defined as the result of a cognitive and effective evaluation, where some comparison standard is compared to the actually perceived performance. If the perceived performance is less than expected, customers will be dissatisfied. On the other hand, if the perceived performance exceeds expectations, customers will be satisfied. Otherwise, if the perceived expectations are met with performance, customers are in an indifferent or neutral stage.
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The value of your property is determined by what a BUYER is willing to pay and a SELLER is willing to accept in today’s market. Buyers make their pricing decision based on comparing your property to other property SOLD in your area.
Pricing Misconceptions:
NOT ..... What you paid.
NOT..... What you want.
NOT..... What you need.
NOT..... What your neighbor says.
NOT..... What it costs to rebuild.
It is very important to price your property at competitive market value at the signing of the listing agreement. Historically, your first offer is usually your best offer.
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Performance budgeting is a budget that reflects the input of resources and the output of services for each unit of an organization. This type of budget is commonly used by the government to show the link between the funds provided to the public and the outcome of these services.
Performance budgeting was designed as an improvement on incremental budgeting. It is based on incremental line-item budgeting but incorporates efficiency measures into the budgetary process. Middle managers must list not only the specific expenditures on various line items but also basic operational activities in relation to money spent.
The benefits of performance budgeting are that it provides information to managers on the activities of a given unit enables managers to assess the efficiency of a given department/agency or office/branch over different years enables managers to compare the efficiency of different bureaucratic units and apportion funding accordingly.
The main weaknesses of performance budgeting are that efficiency ratings are rudimentary because they measure bureaucratic activity quantitatively rather than qualitatively not all bureaucratic activities are easily quantifiable.
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Financial Projection is the predictions for future profit and expense for an organization or country. History, internal information, cost data, and other things are considered to get this figure. It generates a picture of where the company will be in the future as well.
In other word, A forecast of future revenues and expenses for a business, organization, or country. A financial projection will typically take into account both internal information such as historical income and cost data, and estimates of the development of external market factors, providing estimated figures in addition to projections of the general financial condition of the company in the future.
Essential element of planning that is the basis for budgeting activities and estimating future financing needs of a firm. Financial projections (forecasts) begin with forecasting sales and their related expenses.
The basic steps in financial Projection are:
(1) Project the firm's sales;
(2) Project variables such as expenses and assets;
(3) Estimate the level of investment in current and fixed assets that is required to support the projected sales; and
(4) Calculate the firm's financing needs.
The basic tools for financial forecasting include the percent-of-sales-method, regression analysis, and financial modeling.
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Retail banking is when a bank executes transactions directly with consumers, rather than corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. The term is generally used to distinguish these banking services from investment banking, commercial banking or wholesale banking. It may also be used to refer to a division of a bank dealing with retail customers and can also be termed as Personal Banking services.
In the US the term Commercial bank is used for a normal bank to distinguish it from an investment bank. After the great depression, through the Glass–Steagall Act, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital markets activities. This separation was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking).
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Venture capital (VC) is financial capital provided to early-stage, high-potential, growth startup companies. The venture capital fund earns money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology, IT and software. The typical venture capital investment occurs after the seed funding round as the first round of institutional capital to fund growth (also referred to as Series A round) in the interest of generating a return through an eventual realization event, such as an IPO or trade sale of the company. Venture capital is a type of private equity.
In addition to angel investing and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership (and consequently value).
Venture capital is also associated with job creation (accounting for 2% of US GDP), the knowledge economy, and used as a proxy measure of innovation within an economic sector or geography. Every year, there are nearly 2 million businesses created in the USA, and 600–800 get venture capital funding. According to the National Venture Capital Association, 11% of private sector jobs come from venture backed companies and venture backed revenue accounts for 21% of US GDP.
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2) Bad production policies; 
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