Separate Entity Concept forms the base of the accounting principles. It means that for accounting ‘The Business’ is treated independently from The Owners”. This means that even though anything owned by the business belongs to the owners of the business and anything owed by the business is payable by... read more

financial accounting

October 04, 2021

Pakistan Stock Exchange The Karachi Stock Exchange, Lahore Stock Exchange, and Islamabad Stock Exchange merged to form the PSX (PAKISTAN STOCK EXCHANGE) on January 11, 2016. PSX had around 540 businesses listed in January 2021, with a total market capitalization of PKR 8,398,456,068 ($52 billion). PSX provides a... read more

investment analysis

July 15, 2021

Inventory management Inventory management is the management of inventory and stock. As an element of supply chain management, inventory management includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale. Inventory management is all a... read more

financial accounting

December 05, 2019

Precautionary Motive “The desire to keep extra money in case an unforeseen situation requires a capital outlay. For example, one may wish to save extra money to pay for medical bills in case of an accident. According to John Maynard Keynes, people keep savings accounts, as well as some stocks and commodities, w... read more

corporate finance

October 13, 2019

Efficient market hypothesis was developed by fama in 1970 and according to fama the efficient market hypothesis has three forms. Three Forms of EMH Weak form of efficient market Strong form of efficient market Semi-strong form of efficient market 1. Weak Form of Efficient Market The curr... read more

corporate finance

October 07, 2019

Tests for the Semi Strong Market When the current security prices reflect all the public information including market and non-market information. This implies that decisions made on new information after it is made public with not result into any above the average profit. In semi strong form of efficient market, no r... read more

corporate finance

October 07, 2019

The first hypothesis is Random Walk Hypothesis. 1. Random Walk Hypothesis According to this hypothesis the security prices adjust themselves randomly this implies that predicting any changes in the security prices is out of question. The random walk hypothesis is a financial theory stating that stock market p... read more

corporate finance

September 25, 2019

To see whether the market is weak form of market efficient there are two statistical tests. Auto Correlation Test Run Test 1. Auto- correlation Test If there is relation between the prices then we will say that in the stock market there is auto correlation and is weak form of efficient market like... read more

business research methods

July 28, 2019

Corporate Governance “Corporate Governance is the arrangement of guidelines, practices and procedures by which a firm is coordinated and controlled. Corporate Governance basically includes adjusting the interests of an organization's numerous partners, for example, investors, the board, clients, providers, ... read more

introduction to business

May 28, 2019

Defenses Against Takeovers Following are the defenses against takeovers in mergers and acquisition; 1. Stock Repurchase One common way to avoid acquisition is target firm buybacks its shares. The firm would buy the shares from majority shareholders by paying premium, by doing so they possess all the vot... read more

introduction to business

March 25, 2019

Mergers and acquisitions are basically process of formation of new entities with the objective to create synergy. The purpose behind the process is to combine the strengths of two companies and eliminate the weaknesses of the two to achieve greater efficiencies and increased shareholders’ wealth. Mergers are wi... read more

introduction to business

March 22, 2019

4 Main Types of Mergers and Acquisitions Companies may combine in different forms, there are four main types of mergers and acquisitions; Horizontal Mergers / Acquisitions Horizontal mergers occur between the companies that have same customer base, offers similar products and lies on same business level... read more

introduction to business

March 21, 2019

What is Divestiture Selling off some part of the business or the whole business is known as Divestiture. The divestiture can be in two forms; Involuntary Divestiture Involuntary divestiture refers to the liquidation of the whole business as a result of anti-trust ruling by the government. Voluntary Di... read more

corporate finance

March 06, 2019

Brief History of Ecommerce 1970’s innovation like EFT routed electronically from one organization to another but it was limited to large corporations only. EDI electronically transfer routine documents that application en large, pool of participating companies to include manufactures, retailers and services. IO... read more

introduction to business

December 10, 2018

Externality Externality is a consequence of an industrial or commercial activity that other parties or groups without this being reflected in market prices, For example the pollination of surrounding crops by bees kept for honey. Externalities arise from Allocation of funds which means that living your life on th... read more

business economics

December 08, 2018

Term Loan Term loan is a type of loan whose repayment takes place in more than one year but less than 10 year. Term loan are extended under a formal agreement between the borrower and lender. The repayment of term loans normally takes place quarterly, semi- annually and annually. The repayment includes interest ... read more

corporate finance

December 07, 2018

What is Over The Counter (OTC)? The operations in the stock market are the result of opening an account in a brokerage house. These accounts are opened in two forms i.e. Cash account and margin account. In cash account you purchase or sell share in your account as per the balance in your account. In margin Account yo... read more

financial management

November 24, 2018

Stock Exchange A stock exchange is a market or bourses market which provides trading facilities for brokers and traders. These stock brokers and traders trade share of the listed companies and other financial instrument such as term finance certificates and derivatives. Stock exchange also provides facilities to issu... read more

investment analysis

November 22, 2018

Classification of E-Commerce Following are the types / classification of E-Commerce; Business to Business (B2B) Business to Consumer (B2C) E-Tailing Business to Business to Consumer (B2B2C) Consumer to Business (C2B) Consumer to Consumer (C2C) P2P Mobile E-Commerce ... read more

introduction to business

November 18, 2018

Black-Scholes Model The Black-Scholes formula also known as Black-Scholes-Merton was the very first extensively defined model for option pricing. It's used to find the hypothetical value of European-style options by means of current stock prices, predictable dividends, the option's strike price, predictable i... read more

business economics

November 18, 2018

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