Monday, April 23, 2012

What is Amalgamation? Definition, Meaning and Example

Definition of Amalgamation
In general, the definition of amalgamation can be stated as follows."Amalgamation is a union of two or more companies, made with an intention to form a new company."In terms of finance, the definition of amalgamation can be given as under."Amalgamation is an agreement (deal) between two or more companies to consolidate (strengthen) their business activities by

Sunday, April 22, 2012

What is Merger? Definition, Meaning and Example of Merger

Definition of Merger
The definition of merger in general and in finance can be stated as follows:In General,"Merger is an absorption of one or more companies by a single existing company."In Finance,"Merger is an act or process of purchasing equity shares (ownership shares) of one or more companies by a single existing company."Image credits © Arrow International.
Meaning of Merger
Before we

Thursday, April 19, 2012

How to Implement Total Quality Management TQM? 6 Cs of TQM

How to Implement Total Quality Management TQM?
The most important purpose for the implementation of a Total Quality Management TQM process is to get the assigned task completed at the right time and with quality improvement.The Six Cs for successful implementation of a Total Quality Management (TQM) process are depicted as follows:The Six Cs required for proper implementation of a TQM are given

Monday, April 9, 2012

What are Functions of Development Banks?

Functions of Development Banks
The role or functions of development banks in India are depicted below.The nine important functions of development banks in India are as follows:To promote and develop small-scale industries (SSI) in India.
To finance the development of the housing sector in India.
To facilitate the development of large-scale industries (LSI) in India.
To help the development of

Sunday, April 8, 2012

Meaning and Definition of Development Banks in India

Meaning of Development Banks
Development banks are specialized financial institutions. They provide medium and long-term finance to the industrial and agricultural sector. They provide finance to both private and public sector. Development banks are multipurpose financial institutions. They do term lending, investment in securities and other activities. They even promote saving and investment

Non-Banking Activities Services Offered by Banks

Non-Banking Activities
All banks perform non-banking activities along with their traditional functions.A bank cannot survive without performing the following non-banking activities:Banks help their customers to make utility payments with ease.
They perform merchant banking for their customers.
They provide factoring services to their clients.
They manage mutual funds and minimize investment

Friday, April 6, 2012

Changing Role of Banks in India Since Economic Reforms of 1991

Changing Role of Banks in India
The role of banks in India has changed a lot since economic reforms of 1991. These changes came due to LPG, i.e. liberalization, privatization and globalization policy being followed by GOI. Since then most traditional and outdated concepts, practices, procedures and methods of banking have changed significantly. Today, banks in India have become more

Banker-Customer Relationship Explained in Detail

Banker-Customer Relationship
The relationship between banker and customer is mainly that of a debtor and creditor. However, they also share other relationships.Some of the important relationships they share are depicted below.The banker-customer relationship is that of a:Debtor and Creditor,
Pledger and Pledgee,
Licensor and Licensee,
Bailor and Bailee,
Hypothecator and Hypothecatee,
Trustee and

Tuesday, April 3, 2012

What are the Important Features of an Asset?

Important Features of an Asset
The important features of an asset are depicted in the following image.The six important features of an asset are briefly listed as follows:Asset has a price or value in the market.
It must generate some revenue.
It has maintenance or repair cost.
It undergoes depreciation over a period of time.
It has an estimated useful life span.
It also has a scrap value.
Now

Monday, April 2, 2012

What are Challenges Before Indian Entrepreneurs?

Challenges Before Indian Entrepreneurs
The challenges which Indian entrepreneurs have to face are depicted below.The Indian entrepreneurs have to face following challenges:To understand, tackle and survive the era of globalization.
To take optimum advantage of business opportunities arose due to liberalization of Indian economy since 1991.
To replace outdated technology with improved modern