Meaning of Microeconomics Generally, the subject matter of economics is broadly divided into two main branches. They are microeconomics and macroeconomics. These two words become everyday words nowadays. Microeconomic analysis and macroeconomic analysis are now considered two important approaches to economic analysis. The terms ‘micro’ and ‘macro’ were first used in economics by Norwegian economist […]
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The term profit in economics differs from that generally used by the business community. A business profit is an accounting profit or accounting concept of profit and presents the residual sales revenue to the owners of the business firms after making payments to all purchased factors or resources used by the firm belonging to other persons.
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Scientific research refers to the process of conducting research. It means the research which is conducted with some scientific characteristics is called scientific research. Scientific research is not any special type of research nut it is different than general research. Any research can be scientific research if it has followed the scientific attributes.
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Research is a procedure that includes a sequence of steps needed to gather and examine the information to boost and amplify the understanding and consideration of a particular topic or issue. It involves a major four steps as posing a question, setting hypothesis, collecting data to analyze the posed issue, and presenting answers to the posed question. It is s method of searching for facts in any branch of knowledge.
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Financial management functions are mainly viewed from two approaches as traditional function or role and the new role or functions. Raise of funds is taken as a traditional role or function whereas raise and allocation of funds are taken as a new role of financial management or finance managers. The first approach confines the functions of financial management is the procurement of funds only and ignores the utilization of funds whereas, the second approach not only focuses on the procurement of funds but effective utilization of funds as well.
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The business organization produces goods not for the charity rather for generating profits. In a dynamic and free-market economy, profit is only the major stimulating factor for new innovation and new products. The rate of profit in the economy gives a signal to producers to change their rate of output or to leave or to join the industry.
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Generally, the businessman thinks that the excess of income over his expenditure is profit. Profit is, therefore, the net income of the firm. The organization combines different factors of production like land, capital, labor, raw materials, fuel, and energy, etc.
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Managerial economics combines economic theories with decision science tools and as it is metrical and analytical it assists the managers to solve the complexity existed in the business. Managerial economics through its skills and techniques always ensure the solution to business decision-making problems that may be faced by every type of business organization. Managerial economics plays a key role in the business decision-making process.
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Managerial economics is developed from micro economic theories by taking those concepts and techniques that help managers to select strategic decisions/direction, efficiently allocate the available resources, and to respond effectively to strategic issues. Therefore, it is an application of economic theory into business practice/management.
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In the most common understanding, research refers to the search for a new thing to increase the stock of knowledge or to increase the horizon of knowledge on different issues in different subjects. Some people consider research as movement and connect it with movement from the known to unknown. It is also called a voyage of discovery.
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