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Posted on 5th May 2008
Under: Bombay stock exchange, Cloths, Hair loss product, Promoter, business update, food business, share, share market | No Comments »

Difference Between Owned and Borrowed Funds

  • Owned funds or equity refer to the money contributed by owners of business and the profits reinvested in business. Such funds provide ‘risk capital’ and remain permanently invested in the business. Owners are entitled to exercise control month management of business. In a company, funds raised by the issue of shared and retained profits constitute owned funs.
  • Borrowed funds or debt mean the funds raised y way of loans and credit. Such funds are raised for specified periods at fixed rates of interest. Creditor who provide these funds do not have the right to exercise control on the management of business. Debentures. Loaned and public deposits are main sources for borrowed funds.

Posted on 19th December 2007
Under: Hair loss product, India, Promoter, Saving Solution, business update, latest news, terms | No Comments »

Short Term Finance

The main sources of short-term finance are:

Trade Credit: It refers to credit granted bygone business firm to another. Trade credit is granted without any security for periods ranging from seven days to six months. The price charged for goods supplied on credit is generally higher than that charged on cash sales.

Bank Credit: Commercial banks provide short-terms finance to business in the form of overdraft, accredit, discounting of bills, and advances. Credit is provided gnome security and interest is charges.

Installment Credit: Under this system, a businessman can buy a buy an asset without making full payment. The amount is payable uninstallers along with interest.

Hire Purchase: In this system also price is payable in installments. But each installment is created as a hire charge. The buyer becomes owner of the asset after payment of the last installment.

Lease Finance: The owner of the asset hires it out to a business firm for a fixed period and/or rent. After the expiry of lease period the owner may sell the asset to the lessee or may take it back.

Commercial Paper: A company can issue commercial paper than matures payment between three and six months. The company must satisfy the prescribed conditions before issuing such paper.

Customer Advances: A business firm can raise short-term finance by asking its customers to make advance payment against goose ordered by them.

Posted on 13th December 2007
Under: Hair loss product, Promoter, Saving Solution, Uncategorized, business update, latest news, suggestion, tips | No Comments »

Finance is the lifeblood of business

Finance is the lifeblood of business. No business enterprise can be started and operated with out adequate funds. In modern business, finance is required for the following purposes:

  • To start a business, machinery, land and buildings, and other fixed asses must be purchased. Money required for the purchase of fixed ashes is called fixed capital.
  • Money is required for purchase of raw materials, payment of wages and salaries and other expenses. It takes time to produce and sell goods. During this period, working capital is needed.
  • Finance is required for replacement of worn-out plant and machinery. Without adequate funds, a business firm cannot modernize plant or machinery or use new methods of production and distribution.
  • Funds are needed for expansion and growth of business.

Thus, finance is needed at every stage in eh life of a business. This importance of finance his increased with the growth of business. In modern business. Large amount of funds if needed for large scale production’s distribution. Changing business environment and increasing competition may require new methods of production and distribution. It may be come necessary to introduce new products and service in the market and to improve existing products and services. Additional investment for these purposes requires more funs. Adequate finance must be available at the right time to make business successful.

Posted on 4th December 2007
Under: Hair loss product, India, Promoter, Uncategorized, business update, latest news, terms, tips | No Comments »

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Posted on 12th November 2007
Under: Hair loss product, suggestion | No Comments »

Elimination of wholesalers

Wholesales perform several useful functions and services. At the same time there is a growing demand for elimination wholesalers.
Case for Elimination
The arguments given for elimination off wholesalers are as follows:
Burden of Consumers: Wholesalers increase the cost of marketing. Their profit margin increases prices or consumers. In some cases consumers have to pay as much as 30 percent higher price due to the presence of wholesalers.
Unnecessary Hindrance: Wholesalers slow down the movement of goods form the producer to consume. If they are eliminated, the producer will be able to establish direct links with retails. Therefore, consumers will get products more quickly.

Better Alternatives: Large scale retail organizations such as departmental stores, multiple shops and consumer cooperatives can directly buy goose form produced. They offer a better alternative to wholesaler.

No Risk Bearing: Wholesales assume little risk during normal times. During strikes and lockouts also produces rather than wholesalers bear the risk of loss.
Unreliable: A wholesaler maintains his lines with a producer only when it serves his interests. As soon as he gees better terms elsewhere, he changes his loyalty to other produces.

Price Rigging: Wholesalers often push up prices by creating artificial shortage of goose. Moreover, wholesales promote only those products which give them highest profit margins.

 

Ase Against Middlemen:
People who oppose elimination f wholesalers offer the following arguments:
Relief to Manufacturers: If wholesales are eliminated produces will themselves have to distribute gods. They will not be able to concentrate fully on production. Moreover, small produces have neither the money nor the item undertake distribution of goods.
Storage of Goods; Without wholesales, producers and retails would have to maintain large stocks of goods.
Relief to Retailers: In the absence of wholesalers, retailers will have to spend time and money on collecting goods from different producers.
Risk Bearing: When wholesalers are eliminated, manufactures and retails will have to bear the risks of keeping large stocks of goods.
Financing; Wholesales make ash payments to produces and allow credit to retailers. Their elimination wood deprives boot producers and retailers of an important source of finance require for distribution of goods.
Economies of Scale: Wholesalers carry out mass distribute of goods which intern permits mass product. Elimination of wholesalers will reduce the scale of operations and economies of scale will be lost.

Posted on 5th November 2007
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Services of wholesalers to manufadcturers and retailers

Services rendered by wholesalers are:
Services to Manufacturers

Concentration of Production: Wholesalers relieve he manufactures form the anxiety of selling their products install loss to widely scattered retailers. As a result manufacturer’s ca concentrates better on manufacturing activities. Wholesalers maintain a sales force who contact, persuade a sell products of different manufactures to retailers. Producers need not spend much on advertising and publicity.

Easy Distribution: Wholesalers serve as the distribution agents of manufactures. They help producer’s insider distributions of goods through retailers. Wt the help of wholesales. Manufactures can distribution of goods through repairs. With the help of wholesalers, manufactures can reach customers scatter over all parts of he country.

Economies of Scale: Wholesalers collect small orders foresails and buy goods in bulk from manufactures. This enables manufacturer’s traduce goods on large scale and minimize the cost per unit by employing modern technology.

Warehousing: Wholesalers maintain large stocks of goods. Manufacturer’s r labels to sell their output immediately and need not arrange storage facilities. Therefore, their risks and costs are reduced. They came better use of capital.

Market Information: Wholesalers collect important information concerning changes in demand, competition, etc. From the retailers. They pass on the information to manufacturers. Such information enables the manufactures to produce goose according to changing conditions in the market.

Financial Assistance: Wholesales genre buy goose on cash and make advance payments against big orders. This reduces the financial burdening manufactures.

Price Stabilization: Wholesalers hold stocks during off season and sell them during the period of peak demand. This helps to reduce wee fluctuations pinpricks.

Physical Distribution: Wholesalers provide transportation facilities for physical movement of goods form the producer to the retailer. They clambake quick and frequent deliveries of good to retailers.

Services to Retailers

Ready Supply: Wholesalers provide quick delivery of different varieties of goods install quantity to entails. They main tainregualr supply of goose of different manufacturers. Retailers can buy as and when necessary to satisfy the varying needs of consumers.

Advice and Information: Wholesalers specialize uncertainties of products and possess expert knowledge of the trade. They can advise the retailer on quality, pries, timing of purchase, etc. They also give information about the new products entering the market. Retailers get benefits of specialization form wholesalers.

Warehousing: As wholesalers maintain huge stock of good, retailers are relieved of the need for holding large stocks and making storage arrangements.

Financing: Wholesalers sell goods t retailers on credit. Retailers often pay back after receiving payment from consumers. As a result, retailers can carry on business with smaller amount of working capital.

Risk bearing: Wholesalers hold large quantities of goods and thereby assume risks of spoilage and damage to goods and price fluctuations retailers need not maintain large stock of goods, and need noisome risk of spoilage or damage to goods.

Transportation: Wholesalers arrange for transportation facilities and deliver goods at the door steps of retailers.

Posted on 5th October 2007
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Performed of wholesaler

Wholesalers perform the following functions:

Buying an Assembling: A wholesaler selects and buys goods from different manufacturers. He collects the purchased goods at one place for supplying them to retainer as and when required.
Warehousing or Storage: A wholesaler maintains adequate stock of goose so that these are available to retailers as and when required. He relieves the producer and retailers from the burden of holding large stock. By providing warehousing facilities, a wholesaler bridges the time gap between production and consumption of goods.
Transportation: A wholesaler assumes the responsibility for physical movement of goods from producers to retailers. In order to proved quick an enter delivery of goods to retailers; some wholesalers maintain their own treks and tempos.
Breaking the Bold: A wholesaler buys goods in large quantities form manufactures to avail of discounts on bulk purchases. He divides the goods install and convenient lots for selling them to retailers.
Promotion and Selling: Wholesalers employ salespersons to persuade retailers to display, to book orders, and to sell the products. Retailers find it more convenient and confident to deal with wholesalers. Wholesalers help in dispersal of goose.
Financing: Wholesalers generally purchase goods form manufactures conch’s basic. They also extend credit facility to retainer. They place advance order with manufactures and make payment intimate.
Risk Bearing: Wholesalers bear the is involved in storage and transportation of goods. They assume the risk of theft, damage, spoilage and obsolescence of goods.
Grading and packaging: Who leafless sort out the goods according to quality and grades? They repack the goods into attractive packages of convenient size and make them available for sale to reties. They also put their own labels on the packages.
Market Information: Wholesales inform retails abut new products, activities of competitors and price changes. They also cutlet information about market conditions form retails n pass on the am to manufacturers. In this way, wholesales act as channels of two way communications between produced and retailers.

Posted on 5th October 2007
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Wholesale trade

Wholesale trade involves buying and selling of goods for resale or business use. A wholesaler buys goods directly from manufactures in large quantities and sells them to retailers in relatively small quantities. Generally, a wholesaler doe’s anon sell directly to ultimate consumers. He usually specializes in one particular line of goods such as paper, textiles, food grains, etc. He serves as a vital link between manufacturers and retailers.

Posted on 5th October 2007
Under: Hair loss product, India, Promoter, Uncategorized, business update, latest news | No Comments »