Financial Statements-Meaning After setting a goal of the corporation and designing the tasks and decisions accordingly the duty of the corporate manager is to report the stakeholders about the corporation’s affairs. The shareholders are the real owner of an organization. Therefore, corporate managers have to report the shareholders about the organizational financial matters that affect […]
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Economic theory tends to the construction of a model that can describe the economic behavior of individual units and their interactions which create the economic system of the region, a country, or the world. A model is a simplified representation of the real circumstance of economic entities. The model includes the major features of the
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Financial management is concerned with decision making regarding the size and composition of assets and the level and structure of financing. To make a wise financial decision in any corporation requires a clear understanding of the objective that is to be achieved. So the objective or goal provides a framework for optimal financial decision making.
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In economics, the model is defined as a theoretical construct that represents the economic relationship between different sets of variables with help of definite assumptions, and a set of logical equations or functions relating to a particular well-defined problem. Thus the model is a description of the relationship between two or more economic variables. For
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Under the modern approach to financial management the business firm or financial manager has to do major three functions (at least) as; where to invest funds and amount to invest, the dividend payment ratio of the period, and from where to raise funds and in what combination and policies. The goals of financial management direct
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Economic growth is the steady procedure by which the productive capacity of the nation or economy is increased over time to bring an increased standard of living and national output. It is affected by different economic as well as non-economic factors. The different sources of economic growth or factors affecting economic growth are pointed by
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The term economic development is fundamentally different from the concept of economic growth. In an ordinary sense, the term economic growth is related to the rate of change in GDP or per capita income of the people of the country. Growth concerns the quantitative aspect of change and growth. So, economic growth is a sustained
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To understand all the insights of economics, for example, to find the answer to inquiries like what economics is all about, what central idea economics has, and so on, we need to understand the ten principles of economics analyzed by Prof. N. Gregory Mankiw. People face trade-offs In economics nothing is free. It means, that
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Economics is a social science that studies the economic relationships and behavior of individuals, organizations, societies, and nations. The theories studied in economics are based on the facts relating to the behavior of human beings and other economic participants. Any fact-based on established and verified hypothesis got the status of theory. The theory that is
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