Definition of Amalgamation
In general, the definition of amalgamation can be stated as follows."Amalgamation is a union of two or more companies, made with an intention to form a new company."In terms of finance, the definition of amalgamation can be given as under."Amalgamation is an agreement (deal) between two or more companies to consolidate (strengthen) their business activities by
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What is Amalgamation? Definition, Meaning and Example
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How to Start a Business? Steps to Set Up a New Business
How to Start a Business?
Starting a business means setting up a new business enterprise. This initiation is also known as the promotion of business.Image credits © Ashley Renee.Promotion of business is done by a Promoter or an Entrepreneur.The Promoter has to take some steps to start a new business enterprise. Promotion of business is not an easy job. One mistake will cause many difficulties for
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What is Fixed capital? Definition, Meaning and Examples
Definition of Fixed Capital
In general, the definition of fixed capital can be stated as under.“Fixed capital is a compulsory initial investment made by the entrepreneur to start up the activities of his business.”Fixed capital is a mandatory one-time investment made at the introductory phase of a business establishment.Fixed capital is not alike working capital, which is required on a
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What are Features of Fixed Capital?
What are Features of Fixed Capital?
The ten important features of fixed capital are depicted in the following image.The main characteristics or features of fixed capital are listed as follows:Purchase of fixed assets.
Promotion and expansion of business.
Low liquidity.
Permanent in nature.
Primary sources.
Amount of fixed capital.
Long-term needs of business.
Source of wealth and risk.
Source of
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What is Foreign Collaboration? Definition, Meaning, Examples
Definition of Foreign Collaboration
In general, the definition of foreign collaboration can be stated as follows.“Foreign collaboration is an alliance incorporated to carry on the agreed task collectively with the participation (role) of resident and non-resident entities.”Alliance is a union or association formed for mutual benefit of parties.Foreign collaboration is such an alliance of
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What are Features of Foreign Collaboration?
What are Features of Foreign Collaboration?
The nine important features of foreign collaboration are depicted below.The main characteristics or features of foreign collaboration are as follows:A type of partnership.
Requires an approval of the government.
Entities are from developed and developing country.
Benefits to developed country.
Benefits to developing country.
Establishes business
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What are Types of Foreign Collaboration?
What are Types of Foreign Collaboration?
The four main types of foreign collaboration are depicted below.The classification or types of foreign collaboration include namely:Financial collaboration.
Technical collaboration.
Marketing collaboration.
Management consultancy collaboration.
Now let's proceed further to discuss each type of foreign collaboration.
1. Financial collaboration
In case of
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What is Priority Sector Lending? Meaning and Areas
Meaning of Priority Sector Lending
Priority sector plays an important role in the economic development of the country. Therefore, the Central (Federal) Government of any country gives this sector priority (first preference) in obtaining loans from banks at a low rate of interest. This is known as a ‘Priority Sector Lending’.Following important points cover the core meaning of priority sector
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What are the Advantages of Amalgamation?
What are the Advantages of Amalgamation?
The ten principal advantages of amalgamation are depicted below.The main benefits or advantages of amalgamation are as follows:Operating economics.
Diversification.
Financial economics.
Growth.
Managerial effectiveness.
Helps to face competition.
Revival of sick units.
Tax advantages.
Increase in market share.
Increases goodwill.
Miscellaneous advantages.
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What are the Advantages of Mergers?
What are the Advantages of Mergers?
The nine major advantages of mergers are depicted below.The major benefits or advantages of mergers are as follows:Economies of scale.
Tax benefits.
Financial resources.
Entry in global markets.
Growth and expansion.
Helps to face competition.
Increase in market share.
Increases goodwill.
Research and development (R&D).
Miscellaneous advantages.
Now let's
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What is Turnaround Strategy? Meaning, Definition, Examples
Meaning of Turnaround Strategy
Following diagram depicts the core meaning of turnaround strategy.The concept or meaning of turnaround strategy covers following points:Turnaround strategy means to convert, change or transform a loss-making company into a profit-making company.
It means to make the company profitable again.
The main purpose of implementing a turnaround strategy is to turn the
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Explain the Features of Turnaround Strategy
Explain the Features of Turnaround Strategy
Following image briefly explains important features of turnaround strategy.Nine important characteristics or features of turnaround strategy are:Turnaround involves restructuring the sick company.
It is applicable to a loss-making unit.
It needs consultation of internal and external experts.
It is a long and time-consuming process.
It involves in-depth
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Functions of Business - Internal, External and Support
Functions of Business
The most fundamental or primary functions of business are depicted below.The functions of business are mainly categorised into three groups viz;
Internal functions of business,
External functions of business, and
Support functions of business.
Internal functions of business help to lay its preliminary foundation.External functions facilitate promoting products produced by
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Stages in Evolution of Business from Local to Global
Stages in Evolution of Business
Explain the evolution of business.Let's understand the broad meaning of evolution of business.“Evolution of business means its origin, growth, and continuous development with expansion in various sectors, that contribute and run economies.”The evolution of business went through many progressive stages or so called developmental steps. In each stage of progress, it
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Disclaimer and Privacy Policy of Kalyan City Life Blog
Disclaimer of blog
We have taken enough care and necessary efforts to provide correct information on all concerned topics. However, we still don't make any guarantees regarding accuracy or completeness of such information.Our readers, especially students, are requested to make use of this website as a source of additional information and not as an alternative to their prescribed and/or
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Sources of Fixed Capital or Long Term Finance
Sources of Fixed Capital or Long Term Finance
The main sources of fixed capital or long term finance are depicted below.The sources of fixed capital or long term finance are:Issue of Equity and Preference shares.
Issue of Right shares.
Private placement of shares.
Issue of debentures.
Term loans.
Retained earnings.
Lease financing.
Now let's briefly discuss each source of fixed capital or long
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Explain Role or Importance of Fixed Capital
Explain Role or Importance of Fixed Capital
Following diagram briefly explain the main role or importance of fixed capital.The main role or importance of fixed capital is listed in following eight points:Fixed capital is required to buy fixed assets for the company.
It is needed to meet various promotionl expenses of a company.
It aids a company to modernise by easing the process of purchasing
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Factors Influencing or Affecting Fixed Capital Requirement
Factors Influencing or Affecting Fixed Capital Requirement
Following diagram highlights the important factors influencing or affecting fixed capital requirement of a business. Click on image for a zoomed preview.The factors determining, affecting or influencing fixed capital requirements of a business are briefly given in the following nine points:Nature of business is the most crucial factor of
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What is Inventory? Meaning Definition Examples
Meaning of Inventory
Let's find out, What is inventory?Inventory is the stock of goods held for doing business.
It is usually required to carry on the business and its allied activities.
Important points covering the meaning of inventory is depicted below.The meaning of inventory mainly revolves around following four items:Raw-materials required for production process.
Work in progress (WIP).
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What is Inventory Control? Definition Meaning Achievement
What is Inventory Control? Definition
1. According to Gordon Carson,"Inventory control is the process where by the investment in materials and parts carried in stocks is regulated, within pre-determined limits set in accordance with the inventory policy established by the management."This definition of inventory control is taken from a book titled 'Production Handbook' published in 1958 and
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