AGRICULTURE
ENTRE PRE NE UR SHID
DEVELOpMENT
ASSIGNMENT-3
-
KANDREULA VENKAT SA) SUJAN
2112|0b032
|V ECEA
Q Explain alot Lipui dity Rato, Leuetagg latie,
Couehage Rato 4 Proftatii ty Rato urita
ex annple
ALiqudity Raties
Liquicity ats ahe chitical fo asessiug
Compoay 's alility to meat it shost te
ebigatiu wslug is nuost lquid assets .
’ t povidas insigutt
health by oliteiniug whethen it hay euougl
to Coves
’ It Caleulated as Cubheut Assets livided by
uttet Cialiities. JEs e compauy's al-iity
to pay Buot -teun delt.
Higlen Ratio means baten
a
a cOmpauuy hag T2 Lakh ia in assets 4
its cwAhet ratio y
2:| jnoli eatinq shroug igulty.
i) Ruck Ratio
a noe stainqet me asue because #
er eludles jnweatoy om tuntent asset.
caloulated as (Custent Aset - Inwets
iidled by Ciabilties.
’ fot eg, Compauy has Z5 lakh in asset
50, 0
iweutoy
quck ato w
eulol be 25:| jncidatig Sofe
iyuidty le(enel.
t asses es Tae eytent to wbich
cowpauy
bottoeo money (dolty to
its opekatius. It a cuucial to auakyse te
fiuaueial usk.
) Delt -to- Eqity Rato
Caleulated as totad Debt oliideol by Total Esuky
A highen hatio ihol'cates Eyut
mete leuehae, wtuc
y
Can be H wot manageo properly.
Fot has (akh i
dolt t T5 lah jn
Compauy
equty, its
its Aatio
weuld be the has
meaning Compauy ob0
o dalt fe euehy 2i uity.
t ouerage Ratios
neaguthes a
debt and otseh red obligatieus. Tey
i)) Luteest Couehaqe Ratio -
Caleulatedl Eauings befohe luterest 4
Tayes ( EBIT) divicled by Iuterest Expeuse.
ow easi tan pay js
Conpay Can
(utehest its outstling olel-t.
-> for erample, EBIT 22lal,
aud iterest expense og T4o, D0o, the Duteregt
Ratio w Bulol be 5:1, Buggestin sheug fhaclal
laealth t4 low Ask o dejut
* Profitali ity Ratios
Evaluates how fectialy a
covpauy glnthates
elatie toto its henenu,
i) Net pholt natqin'
calulateof Net Dncome diijded by Sales
Lt shows heyenue 7hat emajns
pehcetage
phoit aptes al eypeses ae deolucted.
i) Retuky ARsel, (ROA)
’ Calulateo Net jncome diideol hby Totl
Assets. Dt meohes how Copay uees i
aseet to geuehat phofit.
’ Fot , compauy has 2|(akh ih nat iwer
Flp laeh jn toal assets, the ROA is lo%
wAte in dletail adot
plauning aud budetig.
) fiuaucia! Plauning
Conuphe hense phocess teat holps
busiess es get ou- tery goals auol outines
tue trategies hequiheol to acieue ten.
en
jwoue enenue , idujyi
psfetil Cost , settig finaucial tangeta
deteminig the most fcient allocatny Aesases
) Strategic Decisisn Making
Stratesic decisions allous usinesses to ali
taeis finan ciad kesouces wjth theih shateg't
olyiectines, uswiwg that tey Caun aoi'eue
tueir goals.
i) Risk Managewment i
’ Tutough planin, busieees Can |datiy pofeutil
hises aud deuelop sthetejes to itigate then
a Comry naiglt forecast poteubal cas
Jlow slotalls t estatilisl Wue of heobt to
a
Coues wnexpected expeuses
iü) Resouce Alocation ;
Eectie uaneiad planig eusutes that hgowrces
Qhe allocasted iieuty actos Vaious phojeets
amo depastment.
citiial
ouspeucg
seclne
adequate fundiug
Bulqetng eseutia oel tat
’ It y Buppet jiuamaiet
plaunig by pho nilig ditaileo plauy e4
jncome t expenolitues ee pehied.
fuancid bluapint, guiling
busineeses in heis olay- to-cay operaious
) Cost Cotrol
It allows fos timely anjiugrment te pevet
that fuds ae
wailale fo essetial actiit es.
) Penfonance Moui taiug
Abudget acti ike a deuehnark fo
Qualuatig
finaneial pefonanee. By oupasng netel
with buoleted fywnes, busiueses Can
asess whithet ty ae tteck to met
Ocut, manageneut Can oke
coerel actiss
aljusting
3 How the manaemeat functions jaterconnetel
H3-) The coha manogeuent unetios - Paning,
Ohguizlg Leacing Coutioling well
jnter coucted cml don Coutinuo cyele
that diues oGtq ani zatioual Bcaess.
i) Planaing
te foundatienal manaqeeat yenctien
tuat iwolwes setting cjecties , idudiyjlng
esoules aud odeuelopluq stiategies to ackilue
foaly.
Ploning phoides fhe dlaphit fo all
buseset activi tieg
omd cotiolling
Ît
folous planning and woues gtu otug
hesowsces Wke
people,
finances Cnd fechnelogy to imp lenmet te
pla
’ This dunetsn luc lucles ceating a framesonk
Yo tasks, assigning sespoustbilities andl
to Bucihatihg actiiteg to euswe tuat
Aesouces he
ed ficiety
Elctie that ta Sujut
esouees in place o execut tue plan
n) Leasiug
4 à abnt motvatig d guiding euployes
to aehiee gaizatien goals set olling te
plaunig phase.
’ tyectie leasonslip ons wes tat t nployes
e
aliqued with te ouganizaton 's si
Qnd ae wsbing to wands gonls
manameut Junetion, wdich
iWwes
wamteg phopess
peomaue with oljectives aud making
the Coapany stays
tiack to achieue itt qoals
yon planig Mocess, allouikg en isaptavenat.
Lteh cou ctou
Tue owtcome B tue ceuiolling fuuotion Jeds back
ito plani'ng, eabling ohgauizatieus to adapt
to chaugy ewironnet.
EYectie ogouuzing Buppols Jeoing by eusuring
esouees awajlalle
guceeslal deaaing eheaneeg tue eleetiveness
motivating Duployees fo ue hesouees well.
Tuis ites dapendeee cheates a alyuaai'e poceoss
taat qan'zatieal Sueces.
84) Deliwitien t evolution of manag ement theoti es.
A) Mauagemet tusies frameweke that prondo
managehy wita guideliues fon inprotng
ogauizatiual pefomauce
These theoies ofeh
stuctheo appoaches to nangig people anol
Aesouee, wituin gauiz ation
Evoluties o Managemet Theoies -
Clossical Manaqemet tesy
tueotuy (eanly 2ot cetay)
Sieutic Manaq ement i Tis tesy focus es
ipoing iueny houyh bystemabe
optiniatien of wetk es es
a Deueloped by Fradeick Tasg lo.
Administhatine Managemet Hewti fayot deatihed
Sueh
planing, ognisig:
leool'g aud Cowtrollug, which Aena'y relevat t
Bueaachatie Manaqmeti- pay webes itico dueod
te coucupt of eaucacy ogauisatienal
jem chhacteied b
eleah Audes , hiehachy
fecus efieny
2) Behuiohal Manogenmeut Thesy (19 305 - 196o)
hesies X Y:- Poposod by Doug las me
these tueseg
Meege,
wenleh motivetrion. Theoy X trat
euployees ahe
ialchety lany
bupehsib4. Wwle thot
Omployees Seek
hespensibility
Sysfeeg Theoay (1960s)
ieug chgai'zatn as
uteelated pant that wesk
togtes o aciene
COmmen goads.
Tais epphoach e phasizes te ipofane
wnders tauobing te ong auizatio a whole
i'nclcl'hg its jutehaetros with estehnal tnuirouprat
Couting2ucy Tausy (1960, -19o;)
The teoy agues tat thohe is ho ue-Siz8
- fits - ol qptgaalh
ppoach to margenet.
fhe diest managenet pactas deped
wironet teenoloy aud
woyoree
5. Modoun yMana ement hesy i
Total Qualty Mana enti am docuse oy
Coutinuou imponenent t custonoh satifactieu
Lt iwones
japtoin oduet 8ehuies 4 cultune.
> Lean Manaqemet i Lean Manageneat enphasis
weuta heoluetiu
auo icieuey , ainuing to
Cheate value fo4 customneks with eu
hesouees.