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

Capital Budgeting “Capital budgeting (also known as investment appraisal) is the process by which a company determines whether projects (such as investing in R&D, opening a new branch, replacing a machine) are worth pursuing. A project is worth pursuing if it increases the value of the company&rdq... read more

financial management

December 08, 2019

Variable costing is proportionate to the production volume, where it varies with the volume of production. When level of production increases the variable cost also increases and so if level of production decreases then variable cost also decreases. Variable cost includes; Direct Materials Direct Labor ... read more

financial accounting

December 05, 2019

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

Short term finance refers to financing needs for a small period normally less than a year. In businesses, it is also known as working capital financing. This type of financing is normally needed because of uneven flow of cash into the business, the seasonal pattern of business, etc. In most cases, it is used to finance a... read more

financial management

December 04, 2019

Sources of Short Term Financing “Short term finance refers to financing needs for a small period normally less than a year. In businesses, it is also known as working capital financing. This type of financing is normally needed because of uneven flow of cash into the business, the seasonal pattern of business, ... read more

financial management

December 02, 2019

Inventory “Inventory is an accounting term that refers to goods that are in various stages of being made ready for sale” Inventory includes goods prepared for sale as well as any physical resources used in the production of the finished products. Inventory must be reported as a current asset or s... read more

financial accounting

October 13, 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

Under the EDI electronic data interchange and e-commerce system the parent company design a website and access to that website is given to its main customer for example suppliers and distributers. The website can be accessed through customer provided password. These websites are also connected with the banks of parent co... read more

introduction to business

September 26, 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

Board of Directors An overseeing body (B of D) is a get-together of individuals, addressed financial specialists. A barricade's structure is to fabricate plans for corporate organization and oversight, settling on decisions on genuine association issues. Each open association must have a directorate. Some private... read more

introduction to business

April 24, 2019

Entry in pure monopoly is blocked. There are strong barriers that effectively block strong competition. Somewhat weaker barrier permit oligopoly-A market structure dominate by few firms. Still weaker barrier may permit the entry of fairly large numbers of competitors giving rise to monopolistic competition. No barrier me... read more

business economics

April 03, 2019

Monopolistic Competition Monopolistic competition is characterized by the presence of relatively large number of sellers selling. Differentiated products promoted by heavy advertising and easy entry and exit from industry. The first and third characteristic provides the competitor aspect while the second characterist... read more

business economics

March 29, 2019

Mergers and acquisitions are part of overall strategy of the firm. The firms go for such mergers and acquisitions for following benefits Sales enhancement and operating economies The most important reason for such a decision is to enhance the revenue of the firm. By acquiring firms in same line of business or wit... read more

introduction to business

March 26, 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

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