Online Commerce Pathshala

 14 PRINCIPALS OF MANAGEMENT BY HENRY FAYOL The principles of management imply the starting principles or rules on which effective management practices are founded. They are deduced from experiences, observations, and analyses of successful management practices that provide a framework for managers to understand, predict, and influence organizational behavior. Such principles facilitate managers in attaining organizational goals efficiently and effectively by providing insights into how to manage people, processes, and resources. Henri Fayol was a French mining engineer and management theorist who developed 14 principles of management in the early 20th century. These principles have been such that they served as a guide to managers in managing organizations efficiently and effectively. The detailed explanation of each principle is given below: 1. Division of Labor: Specialization increases the output of the workforce due to the reason that every worker performs specific tasks. Divi...

 VARIOUS KINDS OF SHARE CAPITAL Share capital is the money that has been raised by a company by issuing shares to investors, which can be divided into various types—all of these will serve different purposes and will also have different characteristics: 1. Authorized Share Capital : It denotes the highest share capital that a company can issue to its shareholders based on the constitutional documents. It sets a limit after which the company cannot issue shares without amending the charter. 2. Issued Share Capital: It's that portion of authorized share capital that has actually been issued to shareholders. All those shares, which have been allotted to shareholders, whether fully paid or not, fall under this category. 3. Subscribed Share Capital: This is a part of the issued share capital that the investors have irrevocably promised to purchase and undertaken to pay for. This shows the amount of interest and demand that the investors have exhibited in the company's shares. 4. P...

 SHARE CAPITAL: Meaning, Features, Importance Share capital refers to the funds a business raises through issuing shares to investors. It constitutes the fundamental portion of a firm's financial structure and shows the equity part of its capital. Put differently, this is the proportion that shareholders contribute to the company out of which ownership is granted. How it Works A company normally starts with an authorized share capital, which simply denotes the maximum number of shares that can be issued by the company legally, as noted in its memorandum of association. This does not mean that the company has to issue all these shares at one time. When a company decides to raise funds, it issues a certain number of shares which is called issued share capital. These are offered to investors, who can buy them. The amount received from there is the subscribed capital. It doesn't all have to be paid upfront. The company can call for just part of the share price initially; this is ca...

 Explanation of Nine Conventions of accounting Accounting, without human involvement, encompasses the process of recording systematically, summarizing, analyzing, and reporting financial transactions of any business or organization. It keeps records of all monetary activities, such as sales, purchases, income, and expenses, carried out by the business in order to reflect a correct image of its financial health.  In essence, accounting predominantly concerns itself with the preparation of financial statements, including the balance sheet, income and expenditure statement, and cash flow statement, which serve to give further insight regarding the financial performance and position of a business entity. These statements are the basis on which management, investors, creditors, and other stakeholders make their conclusions. Accounting ensures that legal and regulatory provisions are adhered to, helps in efficient allocation of resources, and facilitates financial planning and contr...

  EXPLANATION OF DEBENTURES WITH ITS FEATURES A debenture is a type of instrument of long-term debt that any corporation and government can resort to for raising capital, usually without pledging any specific assets of the firm. Unlike secured bonds, debentures are not pledged on any specific asset but solely based on the creditworthiness and reputation of the issuer; thus, they remain unsecured in nature. A fixed interest rate is associated with a debenture, which becomes payable to investors at certain periodic intervals. Interest payments provide periodic income to holders. Any debenture has a maturity date on which the amount that is principal has to be returned to the holders of such a debenture.  They may either be convertible or non-convertible; convertible debentures can, under certain conditions specified, be exchanged for equity shares of the company issuing them, offering potential upside in equity. Some debentures bear call or put options, which provide for early r...

EXPLANATION OF DIFFERENT TYPES OF PREFERENCE SHARES Preference shares, also known as preferred stock, are a type of equity that has properties of both debt and equity. They have preferential rights over common shares in several aspects, particularly in the payment of dividends and during the liquidation of assets. Here are the different types of preference shares: There are different types of preference shares that balance the elements of risk, return, and control, thus meeting various investor needs and company strategies. 1. Cumulative preference shares - cumulative preference shares have the objective to provide the investor some security regarding the dividend payment; in case a company is unable to pay dividends in any year, the unpaid dividends accumulate and must be paid in future years prior to dividends being paid to common shareholders. Higher income assurance is provided for the investor. 2. Non -cumulative preference shares - non-cumulative preference shares do not carry ...

Kinds of Shares in a company Shares in a company are essentially classified into two major categories: equity and preference shares. Both have rather strikingly different characteristics, rights, and implications for shareholders. 1. Equity Shares (Common Shares) Definition: Equity shares represent ownership in the company and give shareholders a right over the profits and assets of the company. Equity shares, also known as common shares, represent ownership in the company and give shareholders the right to vote on important corporate decisions, such as electing the board of directors and approving major policies. Equity shareholders benefit from potential capital appreciation if the company's stock price increases, and they may receive dividends, though these are typically variable and not guaranteed. However, equity shares come with higher risk, as shareholders are last in line to receive any residual assets in the event of liquidation, after all debts and preference shareholder ...