Capital markets feature heavily in business and it is hard to imagine that the world ever got along without them. They have evolved from a small secluded market to large concerns which cannot escape the attention of all members of society. The features of capital markets are many. These capital market features include a high …
In a capitalist society profits play a crucial role in creating incentives for business owners and entrepreneurs. The reward of profit encourages innovation, costs cutting and improvements in business operations in addition to meeting the needs and wants of the community effectively. What is profit in business Profit is the surplus obtained after all the …
Profit is not cash, only cash is cash as the saying goes. Cash is of course very important to any business. To be exact, cash flow is very important to a business. With credit sales and deferred payment transactions becoming dominant in business the cash balance of a business can be easily divorced from its …
The term ‘trade’ and ‘commerce’ are often used interchangeably with most people associating one with the other, but there is a difference between trade and commerce. Trade is a branch of commerce that is concerned mainly with the exchange of goods and services whereas commerce is broader. Commerce includes all the other related activities that …
A company’s dividend policy affects the performance of its share price and the overall value of the company. The dividend policies chosen must align with the company’s goals and objectives in addition to maximising the company’s value to its shareholders. There are 4 main types of dividend policies: regular dividend, stable, irregular and no dividends. …
Fire accidents are unexpected and can cause damage to homes or businesses therefore, the importance of fire insurance cannot be over emphasised. Fire insurance helps people rebuild their lives as soon as possible by providing financial resources to the people or businesses affected. Some of the features of fire insurance are related to what the …
Grievances can be very harmful to organisations especially if not addressed properly. Therefore, an organisation should have a step by step effective grievance handling procedure. There is no generalised grievance handling procedure for all organisations, each procedure differs from one company to another however, the processes and steps are similar in most industries. What Is …
Inflation is the general increase in price levels experienced in an economy. A little inflation is a norm but a lot of inflation has drastic economic effects. Prices rising too fast means incomes are decimated in the wake. High inflation also introduces a measurement problem, if the value of money changes quickly the values of …
Delegation and decentralisation benefit an organisation mainly by improving business performance. Decentralisation results from delegation and each has its own merits and demerits. The two terms may be related but are different in many ways. The difference between decentralisation and delegation are outlined below. What is Delegation Delegation is when a manager or supervisor assigns …
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Credit sales have become a major element of the business environment. The underlying agreement is simple, a buyer proposes to delay the payment for the item being sold. This can be either a single delayed payment or through instalment payments. This doesn’t always go to plan. The buyer may prove unwilling or unable to pay …