Marketing and Business Knowledge Notes for Bank Exams Preparation
Administered Prices:
A price set not by the force of demand and supply but by some authority like the government or a regulatory authority.
Ad Valorem Tax:
A duty, which is imposed on commodities in proportion to their value i.e., a duty, which is expressed as a percentage and not a flat amount.
Articles of Association:
The Articles of Association prescribe a set of rules to govern the internal working of the company. They cover such things as the issue and transfer of the company's shares, the procedure to be followed in calling general meetings, shareholders' voting rights, and many other matters. Articles of Association require to be registered with the Registrar of companies.
Asset:
When the balance sheet of a business is drawn up, everything which it owns at the time which has a money value is listed as an asset. They may be classified as;
1) Current Assets:- consisting of cash, stock and book debts.
2) Fixed Assets:- consisting of buildings, plant and machinery.
3) Intangible Assets:- being the value of goodwill, ,patents.
Authorised Capital:
When a new company is to be registered, its application for registration is accompanied by a statement indicating the amount of Capital with which it proposes to be registered . This is know as its nominal, registered, or authorised capital.
Average Cost:
Average cost is the cost per unit of output, where the cost of all inputs (factors of production) are included.
Backward Integration:
The expansion of a business which takes the form of acquiring control over firms supplying it with its raw materials.
Backward Linkage:
Refers to the relationship between an industry or firm and the suppliers of its inputs. A change in the output of the industry will get transmitted backwards to the suppliers of its inputs by changing in demand for inputs.
Balance Sheet:
This is an ordered statement of
Balance of Trade:
Capacity:
Closed Economy:
NAV(Net Asset Value):
Administered Prices:
A price set not by the force of demand and supply but by some authority like the government or a regulatory authority.
Ad Valorem Tax:
A duty, which is imposed on commodities in proportion to their value i.e., a duty, which is expressed as a percentage and not a flat amount.
Articles of Association:
The Articles of Association prescribe a set of rules to govern the internal working of the company. They cover such things as the issue and transfer of the company's shares, the procedure to be followed in calling general meetings, shareholders' voting rights, and many other matters. Articles of Association require to be registered with the Registrar of companies.
Asset:
When the balance sheet of a business is drawn up, everything which it owns at the time which has a money value is listed as an asset. They may be classified as;
1) Current Assets:- consisting of cash, stock and book debts.
2) Fixed Assets:- consisting of buildings, plant and machinery.
3) Intangible Assets:- being the value of goodwill, ,patents.
Authorised Capital:
When a new company is to be registered, its application for registration is accompanied by a statement indicating the amount of Capital with which it proposes to be registered . This is know as its nominal, registered, or authorised capital.
Average cost is the cost per unit of output, where the cost of all inputs (factors of production) are included.
Backward Integration:
The expansion of a business which takes the form of acquiring control over firms supplying it with its raw materials.
Backward Linkage:
Refers to the relationship between an industry or firm and the suppliers of its inputs. A change in the output of the industry will get transmitted backwards to the suppliers of its inputs by changing in demand for inputs.
Balance Sheet:
This is an ordered statement of
- The economic resources or assets of a company or other business organisation, each item having a value set upon it;
- The financial claims of persons or organizations upon the value of these assets.
Balance Payments:
Refers to the relation between the payments of all kids made from one country to the rest of the world and its receipts from all other countries.
Balance of Trade:
Refers to the relationship between the values of a country's imports and exports. i.e., the ' visible' balance. These items only form a part of the balance of payments, which also get influenced by
- 'Invisible' items and
- Movement of capital.
Bank Credit:
Refers to the leading by the banking system, by whatever means: bank advances, discounting bills or purchasing securities.
Bank Deposits:
The funds deposited in bank accounts. In reality they are simply records of indebtedness of a bank to the depositor and they arise from the character of banks as financial intermediaries.
Blank Market:
Any illegal market which has been established in a context where prices have been fixed at minimum or maximum level, usually by government. Thus, when maximum prices have been fised, trading may occur at prices above the maximum.
Budget:
A budget is a financial statement showing the estimates of receipts and expenditure.
The budget is divided into two parts:
1) Revenue Budget and
2) Capital Budget
Budget Deficit:
Budget deficit is the difference between total revenues and total expenditure.
Business Plan:
A Business Plan is a formal document containing a mission statement, description of the firm's goods or services, market analysis, financial projections and a description of management strategies for attaining goals.
Capacity:
The term used for the estimated maximum level of production from a plant on a sustained basis, permitting all necessary shut- downs, holidays etc.
Capital Asset:
The term used for an asset, which is not bought or sold as part of the everyday running of a business. Examples include real estate, plant equipment.
Central Excise Duties:
These duties are levied by the Central Government on commodities, which are produced within the country. But commodities on which State Government impose excise duties (as for instance, on liquor and drugs) are exempted from Central Excise Duties.
C.I.F (Cost, Insurance and Freight):
Term used of goods shipped where the price includes shipping and insurance charges. A.C.I.F. quotation implies that the seller must ship the goods, meeting all charges upto ' on board' and playing insurance and freight.
Closed Economy:
A concept which is used mainly in theoretical models to describe an economy having no external trade, which is completely self-sufficient and insulated from external processes.
Consumer Credit:
Refers to a loan, which is given to the consumer for a short period of time, for the purchase of a specific commodity. This can take the form of hire purchase or be in the form of a personal loan from a bank.
Consumer's Surplus:
Means the excess of the price which a person would be willing to pay rather than go without an article over that which he/one actually pays; it may be termed as consumer's rent.
Contango:
A stock exchange term meaning carry-over. A broker who wishes to postpone settlement of a transaction to the following account may do so on payment of interest on the sum due. The term ' Contango ' is also used to mean the extra payment itself.
Corporate Paper:
Notes which are sold by large corporations in the money market as a means of getting funds.
Corporate Risk:
The total risk involved in a business is termed as corporate risk. It comprises two types of risk. Financial risk which arises out of debt finance, and business risk i.e., the basic risk involved in the firm's day to day operations.
Credit Ranking:
Means an evaluation of the soundness of an individual or business firm as a credit risk. It is usually based on
- Company's track record
- Company's current and prospective business
- Financial risk
- Quality of Management
Dead Horse:
Work which is paid for but is yet to be completed a situation in which goods and services have been paid for in advance of production or performance.
Departmentation:
Departmentation may be defined as the process of grouping individual jobs into departments. It is a means of dividing one large and complex organisation into smaller and flexible administrative units.
Economic Growth:
The rate of expansion of the national income or total value of production of goods and services of a country.
F.O.B(Free on Board):
Term used of goods shipped where the price does not include shipping and insurance charges; opposite to C.I.F. An F.O.B quotation implies that the exporter will deliver the goods free on board a ship in accordance with the contract at the port named; he pays all expenses up to that point. From there on, the buyer must take responsibility, paying for freight, insurance, and all subsequent expenses.
Market Economy:
Means an economy in which crucial economic decisions and choices are made in a decentralized manner by private individuals and firms operating through a free price-and-market mechanism. Equilibrium of prices and quantities are determined in a market economy through the laws of supply and demand.
The value of a fund's investment. For a mutual fund, the net asset value per share usually represents the fund's market price.
Overdraft:
Refers to a system of bank lending, by which the borrower is permitted to draw cheques beyond the credit balance in his account, up to an agreed limit, and to pay interest only on the daily amounts by which the account is overdrawn.
V.A.T (Value Added Tax):
A tax levied on the value of each of the processes carried out by a business.
Wash Sales:
It is a transaction in which a speculator sells a security and then buys it at a higher price through another broker. This will create an impression that there is great demand for that security. As a result, people may be induced to purchase them at a very high price.
Important Links:
0 comments: