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What is Research  = Research word is derived from the word Re and Search which is showing its mean, searching the topics which has been searched before and needs to be search for more results So Research can be defined as searching and collecting information to reach new conclusions. We can make research on any topic but it requires specific time to clarify and formulate research topics. Research is very important for every company, businesses, institutions and industries in order to improve their working, their services, their products and to impose best impact on the targeted market in the world. Why spending time is necessary for Research= We need to consume time on researching also for the reason that topic which is being researched has already taken a lots of time so in order to find more new results time is required and necessary. For example spending time for research is important to find out: Are the topics best fit to the requirements? Are the re...

Economics can be defined as= The Branch of Science which deals with the factors that helps to explain the production, consumption, distribution of commodities and transfer of wealth within the country is known as the economy of that country. Whereas Business can be defined as = Any legal activity which is done for the purpose of earning profit is called business, it can be regular or irregular depending upon the nature of the business. Some businesses are regular which perform operations throughout the whole year and some are seasonal which ends with the season. Connection of Business and Economics= Moving towards the explanation of what is the connection between Business and Economics: As we discussed above about the Economics and Business through which we can imagine a slightly difference between them however we do need its further explanation i.e. Economics is how general public of any country select their resources in order to fulfill their unlimited wants and B...

Definition of GDP and GNP. Both can be defined easily according to given below. GDP Definition =                                GDP stands for Gross Domestic Product is the total market value of all the goods                                 and services ,which is manufactured or produced domestically in the country                                         within one year of time. GNP Definition =                               GNP stands for Gross Nation Product is the total market value of all the goods and                               services, by all citizens o...

  Quantity Theory of Money and how it effects business? Quantity theory of Money can be explained by the fact which shows the relationship between increase money supply and the increase in prices of various items and services accordingly. This theory defines the reason of increase in prices of products and services in the country which happens when the money supply in the economy increases. In other words when the money supply increases, there will be large volume of money in the economy as well as in the market then more people access more money which results the increase in price level of the goods and services available in the market. This theory can affect the business in two ways  positively and negatively. Positively, the products or the services of the company could earn handsome profit because of increase in prices and  Negatively, there may be the chances that products or the services demand decreases due to lower income of majority in the countr...

Crowding Out effect = It can be said that crowding out effect is the type of economic theory, according to this theory people of the general public decreases their spending level resulting in the elimination of the private sector spending. In Crowding Out effect people scare from spending due to various reasons which stop them to spend their income on various things, the reason may involve interest rates , inflation, unavailability of various items etc The high rate of interest is one of the most bad thing which give rise to decrease in investment level and becomes the main reason of budget deficit in most countries of the world. So in order to maintain the public level spending, it is very necessary to keep the interest rates according to the requirements.  

Real GDP or Nominal GDP which one is perfect to measure Economic activity? GDP stands for Gross Domestic Product (it is the value of the goods & services produced in the country within a year) and it usually uses for any country in order to measure its economic situation. To answer the above question we first need to know about what real GDP is and what Nominal GDP is for this we must check out its definitions Real GDP = Real GDP is economic output measurement at macroeconomic level to know the price change position in the country for example measuring inflation and deflation. Real GDP can also be defined as it’s an observation which includes measurement of inflation/deflation of goods & services produced in any country within given period of time. Nominal GDP = As compared with the Real GDP, Nominal GDP is about explaining the actual GDP without taking into account other factors or variables such as inflation Nominal GDP do not explains the economic str...

Catch-Up Effect = This Effect is very worthy Effect to know the economic situation of the country related to poor economic country and its efforts which shows how poor country attains richer economy. However The Catch-Up Effect can be defined as                     "it is that kind of hypothesis which explains that poor economies per capita income (i.e                         income per person of the country) will tend to grow faster rates than richer economies                         and the high level of per capita income which the poor economic country achieves."" This effect shows the efforts of the poor countries which becomes richer by converting their poor economy into the high level economy. You may know various countries which becomes superpower and raise their economic situation into the higher leve...

Exchange rate = It can be defined as the value of currency of one country comparing with the value of the currency of other country for the purpose of conversion between them. Difference between foreign currency and exchange rate = Foreign currency is that with which transaction is made within a country, every country has its own special currency which is used within a country by general public. However Exchange rate is that value of other country’s currency which can be measured with the value of our country which is also known as translation. In simple words foreign currency is used within a country and to measure the value of other country’s currency in order to do business. Foreign Exchange Market = It is that market through which we can easily avail foreign currency. Anyone can easily get detail of the spot rate of foreign currency, exchange rate movements, profits and losses associated with the currencies of different countries of the world. What is spot rate?...

Globalization The connection between people from the different places of the world is increasing day by day, in order to increase businesses of various country’s which are connected globally. This phenomenon is known as Globalization. Globalization is also needed as a basic information for businessmen’s, managers, investors and other employees to examine the impact of international activities on their businesses or companies in coming years. Important Points of Globalization To shape globalization the following things are also necessary: Technology, Culture, Economic, Political factors, skills Expertise and Exchange rate. Technological =   It is the necessary part for globalization because technology decides how fast your Country is progressing It consists of Education level, Infrastructure, Knowledge transfer. Culture= It is also very necessary for globalization because every country’s culture define its value and to emphasize this country can inc...

All the above questions are answered below : Exchange rate = It can be defined as the value of currency of one country comparing with the value of the currency of other country for the purpose of conversion between them. Difference between foreign currency and exchange rate = Foreign currency is that with which transaction is made within a country, every country has its own special currency which is used within a country by general public. However Exchange rate is that value of other country’s currency which can be measured with the value of our country which is also known as translation. In simple words foreign currency is used within a country and to measure the value of other country’s currency in order to do business. Foreign Exchange Market = It is that market through which we can easily avail foreign currency. Anyone can easily get detail of the spot rate of foreign currency, exchange rate movements, profits and losses associated with the currencies of ...

Specify the variables which are being affected by monetary policy. Monetary policy influences the following variables 1) Inflation. 2) Unemployment  3) GDP and 4) interest rate Monetary policy also has an important influence on inflation. When the interest rate is reduced, it results in stronger demand for goods and services tends to push wages and other costs higher, reflecting the greater demand for workers and materials that are necessary for production. Federal Reserve has influenced the federal funds rate Interest rate--the rate that banks charge each other for short-term loans.  So it also affects other short-term interest rates that influence borrowing costs for firms and households. As well as long term interest rate such as corporate bond rates and residential mortgage rates. As a result these changes in financial conditions affect economic activity and GDP. E.g. when interest rates go down, it also affects GDP because when the interest rates go down then goods ...

·   D iscuss how central bank affects major macroeconomic variables by effective conduct of Monetary Policy. The objective of CENTRAL BANK monetary policy is to achieve the targets of inflation and growth . CENTRAL BANK formulates the country’s monetary policy to manage growth of the country. Monetary policy decisions affect the level of economic activity in the economy and the inflation rate.  Some of the major macroeconomic variables affected by CENTRAL BANK  are as following: The first variable is the interest rate which affects aggregate demand such as consumption and investment in an economy.  The second, credit variable , involves not only affecting the ability of firms to borrow money it also affects the ability of banks to lend money. These factors are clearly influenced by the structure of the financial system and its regulation.   The third variable of monetary policy focuses on asset prices such as the market valu...

What is Monetary and Fiscal Policy? Monetary policy = It is the process by which central bank controls the supply of money targeting the rate of interest for the stability of the economy and the growth of the country. Monetary policy is usually carried out by the Central Bank and involves: Setting interest rates Influencing the supply of money The Central Bank has an inflation target. If they observe inflation is going above the inflation target, due to economic growth being too quick, then they will increase interest rates. If the economy went into recession, the Central Bank would cut interest rates. Fiscal policy = It explains the government expenditures and revenue collection to influence the economy of the country it involves the change in tax rates and levels of government spending to influence aggregate demand in the economy. Fiscal Policy is carried out by the government and involves changing: Level of government spending Levels of taxation For increasing demand and econom...

Fiscal Policy It can be described as the policy in which Government take action to adjusts its spending's and taxe rates to monitor the nation's economic situation. 

Monetary Policy  Monetary policy can be defined as the mechanism which helps for economic development of the country through controlling money supply targeting inflation and interest rate to ensure price stability.

Business earns money through different ways, Although some ways are following : What is paid-up capital? Paid-up capital is the capital which is generated by shareholders. It can be defined as the amount collected from shareholders (no matter whether it is from primary market or from open market) and add up in the company's capital is known as paid-up capital. Difference between Paid- in capital and Retained earnings? Paid-in Capital= Paid-in capital, also referred to as contributed capital. Paid in capital represents the funds raised by the business from equity, and not from ongoing operations. It refers to capital contributed to a corporation by investors through purchase of stock from the corporation not from other stock holders. It is the amount that the corporation received from stockholders when the corporation issued its stock. Paid-in capital is also referred to as permanent capital. Retained Earnings= Retained Earnings can be defined as the amount of Net ...

Defination of stockholder? An individual or a corporation who legally owns some portion of stock (shares) of public limited or private limited company is called Stockholder of the company. What are the Rights of Stockholders? Following are the rights of the stockholders: Voting Rights : This includes electing directors and proposals for fundamental changes affecting the company such as mergers or liquidation. Voting takes place at the company's annual meeting. Partial Ownership of the Company : Shareholders are the owners of the company but  it depends on the portion of  the shares they holds,the percentage of the shares they hold decides their ownership for the company although  the shareholders overall known as the partial owners of the company. Transfer Ownership : Share holder has full Right to transfer ownership to his relative according to the policy of the company. Detail of Dividends : Shareholder has a right to check the detail of the dividends...