Archive | Economics

The main achievement of the investments in agriculture and industry that occurred under socialist industrialisation is indicated by the following statistics:

After the Second World War, Eastern European countries and the Baltic states adopted many aspects of the Soviet model, although they initially favored very moderate versions of it since, unlike the case of Russia in 1917, the state had hitherto played a moderate role in the economy.

It is generally considered that the most thorough and enduring critique of the results of capitalism was the one formulated by Karl Marx.

The most important was the growth of Industrial Capitalism. Another was the evolution of a Scientific Revolution.

Normally, the Government picks up a clue (or a problem) from public domain, constitutes a committee or a task-force to generate policy options, makes ‘necessary political changes’ in those recommendations, and, then, announces its decision at appropriate forums either in the form of an executive order or a legislative resolution.

Market system is an institutional arrangement that has persisted and evolved over the past few hundred years because it has contributed greatly to our economic well-being.

The principal goal of economic policy in a developing country like India is to accelerate the process of economic development and thereby ensuring swift economic development.

Fixed capital requirement varies from business to business. There are various factors affecting requirement of fixed capital and these are types of business, size of business, techniques of production…

The sources of fixed capital are equity shares, preference shares, debentures, term loans,retained earnings, capital subsidy……

Working capital represents the amount of capital needed by the enterprise for meeting its day to day requirements. According to Shubin, “Working capital is the amount of funds necessary to….

The difference between equity and debt are debt investors are entitled to a contractual set of cash flows (interest and principal) whereas equity investors have a claim on the residual cash flows of the firm after satisfying all claims and liabilities….

The working capital needs of an enterprise are influenced by numerous factors. These are nature of business, size of the enterprise, seasonality of operations, production policy….

The main components of working capital are Cash, marketable securities, accounts receivables, inventories, trade credits and loans from banks etc….

Equity shares have a number of features which distinguish it from other securities. Its important features are right to income,claim on assets, right to control, voting right…

Equity capital has some disadvantages to the firm as compared to other long-term sources of finance. They are cost, risk, earning dilution, product ownership dilution….

Retained earnings means that part of trading profits which is not distributed in the form of dividends but retained by directors for future expansion of the company. Its advantages and disadvantages…