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capital market Capital market means the market for medium and long term funds. It is an organized market consisting of suppliers, users of fund and institutions which assist them. Suppliers includes investing public, banks, financial institutions, mutual funds etc.. Users are business firm, government and semi government agencies. Those who are assisting the suppliers and users of funds are underwriters share brokers and stock exchanges and merchant bankers etc.. Capital market acts as a medium through which the savings of the public are available to business and government. This market is divided into two sections viz.1) The gilt- edged market 2) The Industrial securities market. The gilt- edged market- is a market for government and semi government securities. Also called government securities market. The industrial securities market is divided as !) primary m...

Capital Budgeting

Capital Budgeting Capital budgeting is the process of making investment decisions in capital expenditures. Capital expenditure is an expenditure incurred for acquiring or improving the fixed assets, the benefits of which are expected to be received over a number of years in future. Thus capital budgeting refers to long term investment decisions. Importance of capital budgeting 1. Large investment of funds:- capital budgeting involves large amounts of funds and the funds available with the firm are always limited. So it is important that the judicious use of available funds. 2. Long term commitment of funds:- capital budgeting involves large amounts of funds for long term or permanent basis. Long term commitment involves risk. 3. Irreversible nature:- Once decision for acquiring a permanent asset is taken, it becomes very difficult to dispose of these assets without incurring heavy loss. 4. Long term effect on profitability:- long term ...

condition and warranty

CONDITION AND WARRANTIES Every contract is made up of stipulations which are divided into two categories, namely, conditions and warranties. Condition- condition is a stipulation essential to the main purpose of the contract, breach of which give rises to treat the contract repudiated. Eg Warranty- is a stipulation collateral to the main purpose of the contract, breach of which cannot treat the contract repudiated but give right to claim for damages. Eg Distinction between condition and warranty It is essential to the main purpose of the contract On breach of condition contract may be repudiated On breach of condition buyer may reject the goods In breach of condition aggrieved party is not bound to perform the contract The buyer may treat the breach each of the conditions as breach of the warranty only It is collateral to the main purpose of contract On breach of warranty contract cannot be repudiated, but only dama...

research problem

Research problem In research process, the first and foremost step is the selection and defining a research problem. A researcher must find the problem and formulate it so that it becomes susceptible to research. Just like a doctor, a researcher must examine all the symptoms concerning a problem before he can diagnose correctly. Research problem is in general refers to some difficulty which a researcher experience and wants to obtain a solution for the same. Source of research problem The research problem may be selected from the following sources · Theory of one’s own interest · Daily problems · Technological changes · Unexplored areas · Discussions with experts and authorities including the supervisor or research advisor. Criteria for a good research problem · Relation between variables expressed; The problem should express a relation between two of more variables · Clarity an...