The term Capital Budgeting  refers to the long-term planning for proposed capital outlays or expenditure for the purpose of maximizing return on investments. The capital expenditure may be: 1.      Cost of mechanization, automation and replacement. 2.      Cost of acquisition of fixed assets, e.g., land, building and machinery etc. 3.    Investment on research and development. 4.     Cost of development and expansion of existing and new projects. DEFINITION OF CAPITAL BUDGETING Capital Budget is also known as “Investment Decision Making or Capital Expenditure Decisions” or “Planning Capital Expenditure” etc. Normally such decisions where investment of money and expected benefits arising therefrom are spread over more than one year, it includes both raising of long-term funds as well as their utilization. Charles T.Horngnen has defined capital budgeting as “Capital Budgeting is long-term planning for making and financing proposed capital outlays.” In other words, capital bud

 ➤  1.  Establishment The International Finance Corporation was established in 1956 to encourage private enterprises and to increase the rate of economic development. The private enterprise is mainly responsible for very high rate of economic development in developed countries. In undeveloped in undeveloped countries, the projects of private competitive enterprises are not in existence on large scale. It is one of the reasons of slow economic growth of these countries. One of the economic backwardness of newly independent countries was that they have to wait for very long time for beginning the process of rapid economic development. There was worry of the failure of democratic system because of the different approach of private enterprises. ➤ 2. Objectives The IFC is an associate institution of the IBRD. Their objects are similar to that of objectives of IBRD. Following are the important objectives of IFC-   1.  To encourage foreign 2.  To enterprises private enterprises The IFC un

1. Establishment The IBRD was established in 1944. The first half of the 20 th Century was of uncertainties at levels in social, economic and political fields. Developed countries in Europe were eager to increase the size of their kingdom. The world economy was badly affected because of this approach. It resulted in World Depression in 1929. Immediately after Second World Was it was essential to help the countries to come out of social, political and economic difficulties. In order to remove these difficulties the IBRD was established. The important tasks before the IBRD were:- 1. Reconstruction of economies of countries involved in Second World War. 2. Economic Development of countries. The government of India also faces the same problems of reconstruction and development of Indian economy immediately after independence. 2.  Objectives Objectives of IBRD are:- 1.   To achieve economic development of countries. 2.   To undertake reconstruction of countries. 3.   To remove

World Depression of 1929 cancelled the gold standard It resulted in difficulties in World Trade, Exchange of Money and the Investment at the international level. The second     World War badly affected financial position of those countries involved in the War. In order to improve the financial position and the smooth settlement of financial transaction, economic co-operation was essential. There was a need of the Central Bank of the Central Banks. This kind of institutions was established in the form of the IMF. ➤ 1. Establishment Experts  from U.S.K., U. K. and other countries discussed at a length the issue of international economic co-operation. The outcome of this discussion was the United Nation Monetary and Financial Conference at Bretton Wood, New Hampshire, U.S.A. the conference was organized on 1s t  July 1944 to 22nd 1944. The representative of the 44 countries attended the conference. It completed the final draft of article of agreement of the IMF and the IBRD. The article

1. DEFINITION OF SOCIAL RESPONSIBILITY Social  responsibility of business means duties and obligations of business towards different social groups I.g., shareholder, consumers, employees legal. 2. NEED FOR SOCIAL RESPONSIBILITIES OF BUSINESS The social responsibilities concept implies that business must behave like an ordinary citizen. It must discharge its legal, moral and social functions sincerely. The following factors explain in need for social responsibilities of business.    ➤  1. To protect Environment The  purpose of business is to create wealth and satisfy human wants. It usees the natural and human resources to produce goods and service. There is every possibility of the business misusing the resources for personal gains. Therefore the business must be made accountable and punished for its wrong deeds. This is possible by fixing social responsibilities on business.     ➤ 2. Good public image  A business which responds favorably to social needs enjoys a good reputation and

Market segmentation can be the defined as the process of dividing a market into distinct sunsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix. The strategy of segmentation allows producers to avoid head on competition  in the marketplace by differentiating their offerings, not only of  price but also through styling, packaging promotional appeal, method of distribution and superior service.     Marketers have found that the costs of consumer segmentation research, shorter production runs and differentiated promotional campaigns are usually more than offset by increased sales. In most cases, consumers readily accept the passed-through cost increased for products that more closely satisfy their specific needs. In most cases Market segmentation in just the first step in a three phase marketing strategy.   After segmenting the market into homogeneous clusters the marketer then must select one or more segment t

On the basis of functional approach classification of the marketing activities can be made in the following manner. A.  Exchange  Function The function involves three activities, I.e. Buying, Assembling and Selling. ➤ 1. Buying and Assembling Buying  is the one part of exchange process, other being the selling. Buying is the first step in the process of marketing. A manufacturer has to buy raw materials for production; a wholesaler has to buy goods to sell them to the retailer, a retailer has to buy goods to be sold to the consumer. Buying involves transfer of ownership of goods. Assembling means creation and maintenance of the stock of goods, purchased from different sources. The goods have sometimes to be collected and assembled at one place. This is generally done by middlemen. Buying and assembling are two distinct processes. Both these processes involve elements such as kind, quality, price, date of delivery and other terms and conditions. All these require specialized k