KALYAN CITY BLOG

Golden Rules of Investment Before we proceed let’s revise the meaning of words viz., rules and investment in context of this article. Rules are sets of certain principles or conditions that guide, direct, refine, control, and govern something or someone. Investment is a continuous course of action(s), for exploring the various fiscal alternatives to maximize the wealth. Golden rules of investment used for its evaluation are depicted below. The main principles or golden rules of investment are as follows: Growth is an appreciation or raise or an increase in the market value of the investment. Returns mean an increase in the revenue or income earning capacity of an investment. Liquidity is the realized value or sale value of the investment made as on today. Now let's briefly discuss each golden rule of investment. 1. Growth Growth is an appreciation or raise or an increase in the market value of the investment. An increase in the value is one of the po...

1. Meaning of Credit Card The glossary of credit card is as follows: money from a bank . Card is a small flat object made of a laminated plastic sheet and other materials. Cardholder is someone to whom a card gets issued and who has an obligation to remit all necessary financial borrowings made on his card. The cardholder may be an individual or organization. Here, Issued to someone means one is authorized to use a card. Obligation means a adab or legal liability to do something. Remit implies to pay back the money. ISO is an abbreviation of International Organization for Standardization. IEC is an abbreviation of International ElectroTechnical Commission. NBFC is a short-form of Non-Banking Financial Company. ISO/IEC 7810 is an international standard that specifies (sets or defines) physical characteristics like size, thickness, etc. for identification cards. ISO/IEC 7811 is a set of nine standards ranging from 7811-1 to 7811-9. It specifies traditional d...

What are Features of Credit Card? The eleven important features of credit card are depicted in the image below. The main characteristics or features of credit card are listed as follows: Alternative to cash. Credit limit. Aids payment in domestic and foreign currency. Record keeping of all transactions. Regular charges. Grace period or grace days. Higher fees on cash withdrawals. Additional charges for delay in payment. Service tax. Bonus points. Gifts and other offers. Now let's discuss each feature of credit card one by one. 1. Alternative to cash Credit card is a better alternative to cash. It removes the worry of carrying various currency denominations to pay at the trade counters. It is quite easy and way fast to use a credit card rather than waiting for completion of cash transactions. As an alternative, credit card helps a cardholder to travel anywhere in the world without a need to carry an ample amount of cash. It also reduces the possible risk of money t...

Methods Techniques of Production Forecasting Methods or techniques of production forecasting are depicted below. Image Credits © Moon Rodriguez. The models or techniques of production forecasting are listed as follows: Brainstorming technique. Goal oriented forecast technique. Graphic charting technique. Matrix technique. Nominal group technique (NGT). Delphi technique. Simple average technique. Now let's discuss each method or technique of production forecasting. 1. Brainstorming technique Brainstorming technique is used to forecast demand, especially for new products. In this method, many experts sit together and each expert gives his own idea (forecast) and reason for it. One idea leads to many more ideas. The group of experts will develop much more ideas than one person. Based on these ideas, demand can be forecasted. 2. Goal oriented forecast technique In this technique, a goal is first fixed. Then the technological developments which are required for achievin...

Types of risk First let's revise the simple meaning of two words, viz., types and risk. In general and in context of this finance article, Types mean different classes or various forms / kinds of something or someone. Risk implies the extend to which any chosen action or an inaction that may lead to a loss or some unwanted outcome. The notion implies that a choice may have an influence on the outcome that exists or has existed. However, in financial management , risk relates to any material loss attached to the project that may affect the productivity, tenure, legal issues, etc. of the project. In finance, different types of risk can be classified under two main groups, viz., Systematic risk . Unsystematic risk . The meaning of systematic and unsystematic risk in finance: Systematic risk is uncontrollable by an organization and macro in nature. Unsystematic risk is controllable by an organization and micro in nature. A. Systematic Risk Systematic risk is due to t...

What is Production? Definition As per Carl Heyel (16 Feb 1908 - 16 May 2000), "Production is the process of transforming raw materials or purchased components into finished products for sale." Image Credits © Moon Rodriguez. Meaning of Production Production is a process of transforming (converting) inputs (raw-materials) into outputs (finished goods). So, production means the creation of goods and services. It is done to satisfy human wants. Thus, production is a process of transformation. Process of Transformation Image Credits © Moon Rodriguez. The process of transformation is done in the following ways: Disintegration : Here, one input (raw material) is used to produce many types of output. For e.g. Steel (Input) is used to produce many types of outputs like spoons, knives, plates, etc. Integration or Assembly : Here, many inputs are used to produce only one output. For e.g. many different inputs are used to produce a car. Service : Here, the value of the ...

Unity of Command Principle - Meaning Unity of Command is one of the Henri Fayol's 14 principles of Management . This principle states that there must be only one superior to a subordinate. That is, an employee or a worker must not have many bosses or superiors. If an employee or subordinate has to work under the influence of many bosses or superiors, then it creates a confusing situation, dilemma and disorder. This also affects overall efficiency, productivity and profit of the organization. Image Credits © Official U.S. Navy Imagery Thus, according to the principle of unity of command too many heads (bosses or superiors) must not boss or supervise the same amount of work being done by a worker or an employee. In other words, the work of a worker or job of an employee must always be supervised by a single head. Example of Unity of Command Unity of command is explained with the help of following diagrammatic e.g. Image Credits © Moon Rodriguez. In the above example, Correc...