QUICK REVISION FOR MICRO ECONOMICS FOR COMPETITIVE EXAM

QUICK REVISION OF IMPORTANT POINT OF MICRO ECONOMICS FOR COMPETITIVE EXAM

   QUICK REVISION OF IMPORTANT POINT OF MICRO ECONOMICS FOR COMPETITIVE EXAM

   MICRO ECONOMICS

1. THE PRODUCTION FUNCTION IS A PURELY TECHNICAL RELATION WHICH ESTABLISHES RELATION BETWEEN FACTOR INPUTS AND OUTPUTS
2. A METHOD OF PRODUCTION IS A COMBINATION OF FACTOR INPUTS REQUIRED FOR THE PRODUCTION OF ONE UNIT OF OUTPUT

OFF THE JOB TRAINING METHODS

u   OFF THE JOB TRAINING METHODS

u   MGMT OF HUMAN RESOURCES

u   OFF THE JOB TRAINING

u   TRAINEES HAVE TO LEAVE THEIR WORKPLACE AND DEVOTE THEIR ENTIRE TIME ON THE TRAINING

1. VESTIBULE TRAINING
2. APPRENTICESHIP TRAINING
3. CLASS ROOM TRAINING
4. INTERNSHIP TRAINING
5. CONFERENCES
6. ROLE PLAYING
7. PROGRAMMED LEARNING
8. ELECTRONIC TRAINING

PROMOTION SENIORITY BASIS VS MERIT BASIS HUMAN RESOURCE MGMT

• PROMOTION SENIORITY BASIS VS MERIT BASIS
  HUMAN RESOURCE MGMT
• PROMOTIONS
• PROMOTIONS IS THE TRANSFER OF AN EMPLOYEE TO A JOB WHICH PAYS MORE MONEY OR ONE THAT CARRIES SOME PREFERRED STATUS.
• UPWARD MOVEMENT FROM CURRENT STATUS TO HIGHER STATUS IN THE ORGANIZATION.
• PIGOURS AND MYERS,” PROMOTION IS ADVANCEMENT OF AN EMPLOYEE TO A BETTER JOB-BETTER IN TERMS OF GREATER RESPONSIBILITIES,MORE PRESTIGE OR STATUS,GREATER SKILL AND ESPECIALLY INCREASED RATE OF PAY OR SALARY.”

ON THE JOB TRAINING HUMAN RESOURCE MANAGEMENT

•     METHODS OF TRAINING 1 ON TH JOB TRAINING

•     HUMAN RESOURCE MANAGEMENT

•     MEANING OF TRAINING

MEANING OF GOODS AND CLASSIFICATION OF GOODS UNDER THE CONTRACT OF SALE ...

FINANCIAL LEVERAGE (TRADING ON EQUITY) FINANCIAL MANAGEMENT

FINANCIAL LEVERAGE ( TRADING ON EQUITY)

• FINANCIAL LEVERAGE
  TRADING ON EQUITY
  FINANCIAL MANAGEMENT
  MEANING OF LEVERAGE
• IN SIMPLE WORDS IT MEANS AN INCREASED MEANS OF ACCOMPLISHING SOME PURPOSE.
• LEVERAGE IS USED TO DESCRIBE THE FIRM’S ABILITY TO USE FIXED COST ASSETS OR FUNDS TO INCREASE THE RETURN TO ITS OWNERS, I.E. EQUITY SHAREHOLDERS.

IMPLIED CONDITIONS AND WARRANTIES 1 BUSINESS LAW

CONDITIONS AND WARRANTIES 1

• CONDITIONS AND WARRANTIES 1
  BUSINESS LAW
  
  
• CONDITIONS AND WARRANTIES(12(1)
• A STIPULATION IN A CONTRACT OF SALE WITH REFERENCE TO GOODS WHICH ARE SUBJECT MATTER THEREOF MAY OF A CONDITIONS OR A WARRANTY. STIPULATIONS CAN BE OF TWO TYPES:-

1. CONDITIONS
2. WARRANTIES

MEANING OF GOODS,CLASSIFICATION OF GOODS UNDER SALE OF GOODS ACT 1930

• MEANING OF GOODS,CLASSIFICATION OF GOODS UNDER SALE OF GOODS ACT 1930
  BUSINESS LAW
• MEANING OF GOODS
• ACCORDING TO SECTION 2(7) OF SALE OF GOODS ACT DEFINE GOODS MEANS EVERY KIND OF MOVABLE PROPERTY OTHER THAN ACTIONABLE CLAIMS AND MONEY AND INCLUDES:

1. STOCK AND SHARES
2. GROWING CROPS,GRASS,TREES AND THINGS ATTACHED TO OR FORMING PART OF THE LAND WHICH ARE AGREED TO BE SEVERED BEFORE SALE OR UNDER THE CONTRACT OF SALE

COST CLASSIFICATION PART 1 COST ACCOUNTING

CLASSIFICATION OF COST PART 1 COST ACCOUNTING

• CLASSIFICATION OF COST PART 1
• COST ACCOUNTING
• ACCOUNTING FOR MANAGEMENT
• MEANING

1. COST IS THAT WHICH IS GIVEN OR SACRIFICED TO OBTAIN SOME THING
2. VALUE IS MEASURED IN USEFULNESS BUT COST IS MEASURED IN MONEY
3. EXPENSES  ARE COSTS WHICH HAVE BEEN INCURRED TO GENERATE REVENUE
4. LOSS DENOTES SACRIFICE FOR WHICH THERE IS NO CORRESPONDING RETURN

DIFFERENCE BETWEEN HOLDER AND HOLDER IN DUE COURSE BUSINESS LAW

DISCHARGE BY IMPOSSIBILITY OF PERFORMANCE/DOCTRINE OF FRUSTRATION

DIFFERENCE BETWEEN WAGERING AND CONTINGENT CONTRACT BUSINESS LAW

DISCHARGE BY IMPOSSIBILITY OR SUPERVENING IMPOSSIBILITY OR DOCTRINE OF FRUSTRATION

• DISCHARGE BY IMPOSSIBILITY
  (SUPERVENING IMPOSSIBILITY)
  DOCTRINE OF FRUSTRATION
  BUSINESS LAW
• DISCHARGE OF CONTRACT
• A CONTRACT IS SAID TO BE DISCHARGED OR TERMINATED WHEN THE RIGHTS AND OBLIGATIONS CREATED BY IT ARE EXTINGUISHED. A CONTRACT CAN BE DISCHARGED IN MANY WAYS:
• DISCHARGE BY AGREEMENTS( SECTION 62.63)

1. DISCHARGE OF OPERATION OF LAW
2. DISCHARGE BY BREACH (SECTION  39)
3. DISCHARGE BY PERFORMANCE ( SECTION 37 AND 38)
4. DISCHARGE BY IMPOSSIBILITY( SECTION 56)
5. DISCHARGE BY LAPSE OF TIME
6. DISCHARGE BY IMPOSSIBILITY OF PERFORMANCE

DIFFERENCE BETWEEN CONTINGENT AND WAGERING CONTRACT BUSINESS LAW

• DIFFERENCE BETWEEN CONTINGENT AND WAGERING CONTRACT
  BUSINESS LAW
  
  
• MEANING OF CONTINGENT CONTRACT
• A CONTRACT MAY BE
• ABSOLUTE CONTRACT: WHICH THE PROMISOR BINDS HIMSELF TO THE PERFORMANCE IN ANY EVENT WITHOUT ANY CONDITIONS

PROVISIONS RELATED TO WELFARE OF WORKERS --FACTORIES ACT 1948

PROVISIONS RELATING TO WELFARE OF WORKERS

   PROVISIONS RELATING TO WELFARE OF WORKERS

   EMPLOYEE WELFARE 2

   FACTORIES ACT 1948

   WELFARE PROVISIONS(42 TO 50)

MEANING AND ROLE OF FISCAL POLICY MACRO ECONOMICS

DIFFERENCE BETWEEN SALE AND AGREEMENT TO SALE IN ENGLISH BUSINESS LAW

DIFFERENCE BETWEEN SALE AND AGREEMENT TO SALE BUSINESS LAW

DIFFERENCE BETWEEN SALE AND AGREEMENT TO SALE

• DIFFERENCE BETWEEN SALE AND AGREEMENT TO SALE
  BUSINESS LAW
  SALE OF GOODS ACT 1930
• CONTRACT OF SALE
• SECTION 4 OF THE SALE OF GOODS ACT DEFINE A CONTRACT OF SALE:
• A CONTRACT OF SALE OF THE GOODS IS A CONTRACT WHER BY THE SELLER TRANSFERS OR AGREES TO TRANSFER THE PROPERTY IN THE GOODS TO A BUYER FOR A PRICE
• CONTRACT OF SALE:

MEANING AND ROLE OF FISCAL POLICY IN STABILIZATION OF ECONOMY

• MEANING  AND ROLE OF FISCAL POLICY IN STABILIZATION OF ECONOMY
• MACRO ECONOMICS/PUBLIC FINANCE/BUSINESS ENVIRONMENT

• MEANING

1. RELATED TO REVENUE,EXPENDITURE AND DEBT OF THE GOVERNMENT FOR ACHIEVING A SET OF DEFINITE OBJECTIVES.
2. THE TERM FISC IN ENGLISH MEANS TREASURY. POLICY RELATING TO TREASURY GOVT EXCHEQUER IS CALLED FISCAL POLICY.

MEANING .FUNCTIONS AND QUALITY OF MERCHANT BANKERS

• MERCHANT BANKING

MEANING,OBJECTIVE AND INSTRUMENTS OF MONETARY POLICY

METHODS OF BANKER'S APPRAISAL OF WORKING CAPITAL FINANCE

RECOMMENDATION OF DAHEJA,TANDON,CHORE AND MARATHE COMMITTEE AND CREDIT A...

METHODS FOR WORKING CAPITAL APPRAISAL

• METHODS FOR WORKING CAPITAL APPRAISAL

• MEANING OF WORKING CAPITAL

MEANING,OBJECTIVE AND INSTRUMENTS OF MONETARY POLICY

   MONETARY POLICY
MEANING,OBJECTIVE AND INSTRUMENTS OF MONETARY POLICY
MACRO ECONOMICS
BUSINESS ENVIRONMENT
MEANING OF MONETARY POLICY

   POLICY THROUGH WHICH THE GOVT OR THE CENTRAL BANK OF THE COUNTRY CONTROLS

a)       AVAILABILITY OF MONEY

b)       SUPPLY OF MONEY

c)        COST OF THE MONEY

CREDIT AUTHORIZATION SCHEME WORKING CAPITAL MANAGEMENT

• CREDIT AUTHORIZATION SCHEME
  WORKING CAPITAL MANAGEMENT
• CREDIT AUTHORIZATION SCHEME

1. CAS FOR BANK ADVANCES WAS INTRODUCED BY RBI IN 1965
2. UNDER THIS SCHEME ,ALL SCHEDULED BANKS HAVE TO OBTAIN PRIOR AUTHORIZATION OF THE RBI BEFORE GRANTING ANY FRESH CREDIT LIMIT OF ONE CRORE OR MORE TO THE SINGLE BORROWER
3. LIMIT WAS RAISED TO 2 CRORES IN 1975
4. BANKS FIRST SCRUTINIZE THE PROPOSALS OF THE BORROWERS AND THEN SEND THEM TO RBI FOR APPROVAL
5. RBI AFTER VERIFICATION THE PROPOSAL MAY AUTHORIZE THE CONCERNED BANK TO SANCTION THE LOAN
6. CAS IS REVIEWED FROM TIME TO TIME AND IS PROGRESSIVELY LIBERALIZED
7. THE CREDIT AUTHORIZATION SCHEME WAS THE KEY INSTRUMENT OF CREDIT CONTROL BETWEEN 1965 AND 1988
8. USED BY RBI TO REGULATE BANK CREDIT EXCEEDING THE PRESCRIBED CREDIT LIMIT DIRECTLY
9. LATER THE RECOMMENDATION BY THE CHORE COMMITTEE AND TANDON COMMITTEE WERE INCORPORATED IN THE CAS SCHEME
10. RBI AUTHORIZATION INVOLVED LONG DELAYS
11. BANKS AND FINANCIAL INSTITUTION REQUEST TH LOAN APPLICANT TO PREPARE CREDIT MONITORING ARRANGEMENT REPORT IN ORDER TO UNDERSTAND THE FLOW AND APPLICATION OF FUNDS IN BUSINESS

• CMA REPORT

1. IS A REPORT SHOWING THE PROJECTED PERFORMANCE AND THE PAST PERFORMANCE OB BUSINESS IN FINANCIAL TERMS
2. UNDER THE CREDIT MONITORING ARRANGEMENT BANKS HAVE BEEN PERMITTED FOR SANCTIONING THE CREDIT PROPOSAL ( OF LARGE BORROWER) AFTER DETAILED ANALYSIS OF THE PAST PERFORMANCE
3. THE PROPOSAL INVOLVING WORKING CAPITAL LIMIT RS 5 CRORES AND OR TERM LOAN EXCEEDING 2 CRORES TO  BE SUBMITTED TO RBI FOR POST SANCTION SCRUTINY

• STATEMENTS COVERED IN CMA REPORT

1. PARTICULAR OF CURRENT AND PROPOSED LIMITS
2. OPERATING STATEMENT
3. ANALYSIS OF BUSINESS PLAN
4. ANALYSIS OF BALANCE SHEET
5. COMPARATIVE STATEMENT OF CURRENT ASSETS AND CURRENT LIABILITIES
6. CALCULATION OF MAXIMUM PERMISSIBLE BANK FINANCE
7. FUND FLOW STATEMENT
8. RATION ANALYSIS
9. OTHER DOCUMENTS:

a)    PREVIOUS 2 YEARS AUDITED FINANCIAL

b)    LATEST SANCTION LETTER( IN CASE OF RENEWAL)

c)    PROVISIONAL FINANCIAL FOR THE CURRENT YEAR

d)    TERM LOAN REPAYMENT SCHEDULE

• DETAILS OF THE PROPOSED ENHANCEMENT( IF ANY) ALONG WITH THE TERMS AND CONDITIONS
  
  

RECOMMENDATION OF DAHEJA,TANDON,CHORE AND MARATHE COMMITTEE WORKING CAPITAL MANAGEMENT

• RECOMMENDATION OF DAHEJA,TANDON,CHORE AND MARATHE COMMITTEE
  WORKING CAPITAL MANAGEMENT
  DEHEJA COMMITTEE REPORT
• NATIONAL CREDIT COUNCIL CONSTITUTED A COMMITTEE UNDER THE CHAIRMANSHIP OF SH. V.T DEHEJA IN 1968 FOR THE PURPOSE OF :

1. DETERMINE THE EXTENT TO WHICH CREDIT NEEDS OF THE INDUSTRY AND TRADE ARE LIKELY TO BE INFLATED
2. HOW SUCH TRENDS ARE CHECKED AND ESTABLISHMENT OF NORMS FOR LENDING

SOURCES OF WORKING CAPITAL FINANCE

TRADE CREDIT AND ACCRUALS AS SOURCE OF FINANCE QUICK REVISION OF OLD PAPERS

GROSS WORKING CAPITAL VS NET WORKING CAPITAL

SOURCES OF WORKING CAPITAL

• FINANCING OF WORKING CAPITAL
  WORKING CAPITAL MGMT
  FINANCIAL MGMT
• WORKING CAPITAL REQUIREMENT

IMPORTANCE OF TRADE CREDIT AND ACCRUALS AS SOURCES OF WORKING CAPITAL

• QUICK REVISION OF OLD PAPERS OF WORKING CAPITAL MGMT
  IMPORTANCE OF TRADE CREDIT AND ACCRUALS AS SOURCES OF WORKING CAPITAL
  MANAGEMENT OF WORKING CAPITAL
• FINANCIAL MGMT
• SHORT TERM WORKING CAPITAL

1. AFTER SETTING UP BUSINESS,FUNDS ARE REQUIRED TO MEET DAY TO DAY EXPENSES FOR :
2. PURCHASING OF THE RAW MATERIALS
3. PAYMENT OF WAGES
4. PAYMENT OF RENT
5. PAYMENT OF WATER AND POWER CHARGES ETC
6. CONTINUOUS NECESSITY OF LIQUID CASH TO BE AVAILABLE FOR MEETING THESE EXPENSES
7. IF THE FIRM IS NOT ABLE TO MEET THE SHORT TERM FUNDS,MAY EVEN HAS TO CLOSE THE  BUSINESS

APPROACHES TO WORKING CAPITAL MGMT

MEANING,PROCESS AND SIGNIFICANCE OF CAPITAL BUDGETING FINANCIAL MANAGEMENT

MEANING ,PROCESS AND SIGNIFICANCE OF CAPITAL BUDGETING

• CAPITAL BUDGETING
  MEANING,COMPONENTS
  PROCESS AND SIGNIFICANCE
• FINANCIAL MANAGEMENT
  
  MEANING OF CAPITAL BUDGETING

APPROACHES TO WORKING CAPITAL MANAGEMENT

·         APPROACHES TO WORKING CAPITAL MANAGEMENT

·         MGMT OF WORKING CAPITAL

·         FINANCIAL MANAGEMENT

·         STRATEGIC MGMT

1.       CONSERVATIVE APPROACH

2.       AGGRESSIVE APPROACH

3.       MATCHING APPROACH

4.       ZERO WORKING CAPITAL APPROACH

KINDS OF CONTROL

BUSINESS CYCLE/TRADE CYCLE MACRO ECONOMICS

TRADE CYCLE/BUSINESS CYCLE

• TRADE CYCLE/
  BUSINESS CYCLE
• CA FOUNDATION
  MACRO ECONOMICS
  
  
• BUSINESS CYCLE

1. REFERS TO THE PHENOMENON OF CYCLICAL BOOMS AND DEPRESSIONS. IN BUSINESS CYCLE THERE ARE WAVE LIKE FLUCTUATION IN AGGREGATE EMPLOYMENT,INCOME AND OUTPUT.
2. ANATOL MURAD” BUSINESS CYCLES ARE ALTERNATIONS OF PROSPERITY AND DEPRESSION”
3. LORD KEYNES” A TRADE CYCLE IS COMPOSED OF PERIODS OF GOOD TRADE CHARACTERIZED BY RISING PRICES AND LOW UNEMPLOYMENT PERCENTAGE ALTERNATING WITH PERIODS OF BAD TRADE CHARACTERIZED BY FALLING PRICES AND HIGH UNEMPLOYMENT PERCENTAGE.