concept 1: Role ol Financial Management
.
Dear Determines the capital requirements of business
both long-term and short-term
Dost.::..= Determines the capital struc ture of the comp any
Do - t._ Deci des abou t the allocation of fund
s
Easy_: :::i::: Efficient mana geme nt of cash
Exercises Exercises overall financial controls
Dai ly- Decides abou t the appro priat ion of profits
Concept 2: Importance ot Capital Budgeting Decisions/Fixed Capital Decis
ions
Routine === = --= Risk involved
In c:::::= - Irreversible decisions
=::J::.
Life -=====- • -== Large amou nt of funds involved
concept 3: Factors lllecting Long-Term Investment Decisions/
capital Budgeting Decisions
Include ~ - -== Rate of return
Regular ==-- == Investment criteria involved
Cardio =- - Cash flows of the project
concept 4: Factors lllectinu Financing Decisions
. '..
.-~·-
,.••,, . :i,
See State of capital matket
.
•.....
••• Calorie Cost
\ Qi
Counter Cash flow position of the company
Char t
•'•'
Control considerations
For Fixed operating costs
•
Geo
Food
Recipes
Floatation costs
Risk
concept 5: Factors lllecllng Dividend Decision
1\mount of Ean,fngs
Cash FJow Position
I egol Constraints
Cl ASS Access to Capital Market
[Link] Stability of Bamlngs
Cancelled Stability of Dividends
Growth Opportunities
Earnings
Ta)(ation Policy
Stock Market Reaction
Contractual Constraints
Concept 6: Importance ot Finan ,,~
AFL_
Hi - - Helps to establish a link between the present and the
future
Physical - - =-=~ Provides a continuous link between investment and
financing decisions
Exercise ~==- Ensures smooth running of a business enterprise
===::::=)
Is c:=:=:: Increases the efficiency of operations
--=====::)
Helpful c=:=:=:: &_ Helps in ~ticipating future requirements of a funds
For-- -- , Facilitates co-ordination among various departments
L Fitness== - F0dlitstes, ~~sv performance
IfIe~he Choice of Capital Structure
Following ~ • ~~;:=-__._= Flexibility
Daily<=: =~ - Debt service coverage ratio (DSCR)
Simple c:: = :::::::=> Stock market conditions
Fitness : : = Floatation costs
Routine '"::> Regulatory framework
Can
Cure
C,ommon
c::::::::=:
«-===
c:::=:::__
:::::::=, Cash flow position
-=====> Cost of debt
--=- Cost of equity
. . .1
Cough c=:: - - - Capital structure of other companies
G>ld c::::= ---- Control
t::::,~ Risk consideration
Reduce a:.::::__ _ .......
Risk ---- ~-e::>- Return on investment (ROI)
To c::::=- ~.,,..- Tax ,rate
::;:::r:::; Interest coverage ratio (ICR)
Pai nte d
Concept 1: Functions 01 Financial Market
Provides liquidity to the financial asse
ts
J\
Right Reducing the cost of transactions
Ha nd He lps to determine the price for the
financial asset
Pin k Performs the allocative function
concept 2: Functions of aStock E11change
Pre par ing c=:::=:=:-- :.=.>Pro vid ing liqu idit y and marketability
to
existing securities
Social c::: =:: - .=. Safety of tran sac tion
Studies c.::====-· ==: > Spr ead ing of equ
ity cult
Pro jec t«= :== > Pro vid ing sco pe for
speculation
Co ver =:;; .:.: Co ntri but es to economic gro wth
Pa ge ~= :. Pricing of securities
•
concept 3: Methods 01 Floatation in Primary Ma
rket
A Please c:::::=== ·=== > Private
.0 placement
v---- -,- T VH Op en c:::::=::-~ :===: > Offer thro ugh pro
uix spectus
It T•o V Right ( -:: • Rights issue
.....
.... -.....
k A iiM1'
'. Eyec::=:::=:::··· - ::z::: :, E-ipos
Onlyc:::====-- :::::::: :> Offer for sale
concept 4: Trading Procedure at Stock Exchan
ge
Playc::e-==:. .:- , Placing an ord er
En gli shc == -= ~ Execution of order
Son g CH :::= , Settlement of ord
er
Online c::= = :::c::::!::=, Op eni ng a trad
ing account and dem at account
concept 5: Money Market Instruments
Th is-- ---- Treasury bills
Computer .:r::-- Commercial pap ers
Co urs es- -"" -- Call money
College Certtficae of deposit
Closed .t;.; .., Commercial bill
~~.L!~IIII
- '
concept ;.>
1: [Link] of Marketing
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Business Studies-XII
Concept !:_!u~cuons Of Marketing
arket Tnforrnation
Good - Gathering an d Analysing M
Morning --.---.......... Marketing PJanning
Boss Branding
lopment
Please Product designing an d deve
vices
Call -~ - Customer su pp or t ser
Police Pricing
To Transportation
ing
Pin - ~---""'""~ Packaging an d labell
Prime ='::; _.-- =-- Promotion
Standardization an d Grading
Suspect -
With -:::;:.-=:.-=.. -= == = Warehousing
::=.=--=:!> Physical dis
tribution
Proof ======-
me
concept 3: Qualifies of aGood Brand Na
-
Can c::= === · -= Capable of being registered
Do .. == =-- - Distinctive
:==: ::,
Veryet : =V ers ati le
::, Sh or t an d Simple
Stepsc::=-- ...- .=, Suggestive
Atc::«=-= ~A da pta ble
Sixty-=== _:::. Staying Power
/J
concept 4: Levels of Packaging
• =p Primary package
I ~ Secondary packaging
-- ::. , Transportation packaging
Concept 5: Factors Allecting Price Determina
tion
-,,.._ - -
Can e+= :.:: .:. Co st of pro du ct
Uc , • •• , :::::z:> Uti lity and dem and
Get =
My =,= =::: :I
.:=t Go ver nm ent and legal reg ula tio ns
-==:=> Ma rke tin g me tho ds use d
Ea rc: :c= Ex ten t of competition in the marke
t
Ph on ec: :::=
(
.=Z > Pri cin g objectives
- -
concept &: Promotion Mix
(i' -~--- -----
Sta rt c::=== ; Sales Promotion
:.:::.=·:e:::,• ::::,. Advertising
··= 1 _> Personal Selling
: •
1
' Public Relations
o· ''- lU '
~eek redressa
- .. '
1
Conceut 2:"
•nedressal l\oencies Under
the Consumer Protection let
Do
- Distric t Commi ssion
Someth ing -- State Commi ssion
New Nation al Commi ssion
concept 3: Consumer Responsibilities
Let's Learn about the risks associa ted with product s
and service s
Fix - Follow manufa cturer's instruct ions and use the
produc ts safely.
A =- Assert yoursel f to ensure that you get a fair deal.
Balloon Be aware about various goods and services availabl e in the market.
Race • Respect the environ ment.
At Ask for a cash memo on purchas e of goods or services.
Resort -=- Read labels carefull y so as to have informa tion about prices, net weight,
manufa cturing and expiry dates, etc.
B.,etwe en ,. . Buy only standar dised goods as they provide quality assuranc e.
_,., Be honest in your dealings .
Bert
Friend s File a compla int in an appropr iate consum er forum in case of a shortcom ing in
the quality of goods purchas ed or services availed.
Foreve r Form consum er societies which would play an active part in educatin g
consum ers and safegua rding their interests .
ffifM I fflf iffi
concept 4: Reliefs ava1lahle to a consumer
Po st -- Pa y a rea son abl e an1 oun t of cot npe nsa
tio n for any Joss or inj ury
suf fer ed by lhP con sun ,l'r du e to the
ncg lig Pn ce of the, oppnc.;itP
par ty.
Ind ian Iss ue cor rec tiv e advertisen1<:•nt to ncu
trc1 lisc the' pff ect of a
[Link] [Link] adv ert ise me nt.
Royal Re mo ve the def ect in go od s or def ici enc
y jn ser vic e.
Pujnabi Pa y pu nit ive dam age s in ina pp rop
ria te cir cum sta nce s.
Destination Dis con tin ue the un fai r/ restrictive tra de
pra cti ce an d no t to rep eat it in the fut
\\Tedding vVithdraw the haz ard ou s goo ds from sal ure.
e.
ceremony • Ce ase ma nu fac tur e of haz ard ou s go od
s an d to des ist fro m off eri ng haz ard ous
servic es.
Rituals Re pla ce the def ect ive pro du ct wi th a
ne w on e, free fro m an y defect.
Ph oto s- Pa y ade qu ate cos ts to the app rop ria te
par ty.
Not.::::: No t to off er haz ard ou s goo ds for sal e.
Reception == · · Re fun d the pri ce pa id for the pro duc .
t, or the cha rge s pai d for the ser vic e.
Photos..-=:.s Pa y an y am ou nt (no t les s tha n 5% of
the val ue of the def ect ive goo ds or def
ser vic es pro vid ed) , to be cre dit ed to the icie nt
con sum er we lfa re fun d or any 0ther
org ani sat ion /pe rso n, to be utilised in
the pre scr ibe d ma nne r.