Grow a Business
Business Risks
COWE at April 20, 2011 | 10:01 am | 0 Comment
Every business organisation involves some element of risk. Risk implies uncertainty of profits or danger of loss due to some unforeseen events in the future. An entrepreneur may encounter risks in every area or function of a business. For example:- in production, risks may arise due to irregular supply of raw materials, break down of machinery, labour unrest, etc; in more...
Joint Ventures
COWE at April 20, 2011 | 10:06 am | 0 Comment
A joint venture is a new enterprise owned by two or more participants. It represents a combination of subsets of assets contributed by two (or more) business entities for a specific business purpose and a limited duration. It is essentially a medium to long-term contract which is specific and flexible. Though, the joint venture represents a newly created business more...
Opening Branch Offices
COWE at April 20, 2011 | 10:24 am | 0 Comment
A company expands its business by opening up its branch offices in various parts of the domestic country as well as in other countries. A branch office refers to an establishment which carries on substantially the same business and activity as is carried out by its Head Office. Such offices help the company in:- Spreading its business to diverse locations and thus more...
Mergers and Acquisitions
COWE at April 20, 2011 | 10:40 am | 0 Comment
An entrepreneur may grow its business either by internal expansion or by external expansion. In the case of internal expansion, a firm grows gradually over time in the normal course of the business, through acquisition of new assets, replacement of the technologically obsolete equipments and the establishment of new lines of products. But in external expansion, a firm more...
Financial Support
COWE at April 21, 2011 | 11:37 am | 0 Comment
An entrepreneur needs a continuous flow of funds for his business so as to run its activities smoothly. The funds are invested in the physical resources i.e. land, buildings, machines, equipments, raw materials, etc which are used by the enterprise in production and marketing process. In other words, these funds are a pre-requisite for mobilisation of the real resources more...
Regulatory Requirements
COWE at April 21, 2011 | 11:45 am | 0 Comment
An entrepreneur, in order to successfully expand and grow his/her business on a sustained basis, must take into account the basic regulatory requirements of the country. These requirements are necessary for the functioning of his/her enterprise in the statutory framework of the country and help him/her to know about his/her rights and responsibilities as well as the more...
Types of Business Risks
COWE at April 22, 2011 | 10:17 am | 0 Comment
Business risks are of a diverse nature and arise due to innumerable factors. These risks may be broadly classified into two types, depending upon their place of origin. Internal Risks are those risks which arise from the events taking place within the business enterprise. Such risks arise during the ordinary course of a business. These risks can be forecasted and the more...
Methods of handling business risks
COWE at April 22, 2011 | 10:50 am | 0 Comment
Risks in any business are inevitable and they cannot be eliminated completely. But an entrepreneur can control and minimise their negative consequences by adopting a suitable risk management strategy. The various methods that may be used for handling business risks are as follows:- An entrepreneur can avoid some of the risks by analysing the potential results (losses more...
Stock Market Rating
COWE at April 22, 2011 | 11:25 am | 0 Comment
Stock market or securities market is a market where securities issued by firms in the form of shares, bonds and debentures can be bought and sold freely. It consists of primary market and secondary market. Primary market or the new issues market is the market which is concerned with the issue of new securities. Companies often raise funds through the primary market for more...
Public deposits
COWE at April 22, 2011 | 11:30 am | 0 Comment
Public deposits are an important source of financing the medium-term and long-term requirements of a company. The term 'public deposit' implies any money received by a company through the deposits or loans collected from the public. The public includes the general public, employees and shareholders of the company but excludes the money received in the form of shares and more...