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Economic Value Added is an important measurement tool which used by organizations to determine whether existing or proposed investment contribute positively to the owner's wealth. Economic value added is calculated by by subtracting the cost of funds used to finance an investment from its after-tax operating profits. Positive EVA adds value to the owner's wealth whereas, Negative Value decrease owner's wealth. So, EVA having positive Value is considerable or acceptable . For example, the EVA of an investment with after-tax operating profits of $410,000 and associated financing costs of $375,000 would be $35,000 (i.e., $410,000 $375,000). Because this EVA is positive, the investment is expected to increase owner wealth and is therefore acceptable

There are following three types of Businesses. 1. Sole Proprietorship 2. Partnerships 3. Corporations Types of Businesses 1-      Sole  Proprietorship A sole proprietorship is a business owned by one person who operates it for his or her own profit. About 75 percent of all business firms are sole proprietorship. The typical sole proprietorship is a small business, such as a bike shop, personal-trainer, or plumber. The majority of sole proprietorship are found in the wholesale,retail, service, and construction industries. Typically, the proprietor, along with a few employees, operates the proprietorship.He or she normally raises capital from personal resources or by borrowing and is responsible for all business decisions. The sole proprietor has  unlimited-liability ; his or her total wealth, not merely the amount originally invested, can betaken to satisfy creditors. کاروبار کی جو پہلی قسم ہے اس کو ہم واحد ملکیتی کاروبار کا نام دیتے ہی...

Major Areas of Business Finance Major Areas of Business Finance is divided into two parts Financial Services  Managerial Finance Financial services  is concerned with the design, delivery of advice and financial services to individuals, business, and government. It includes a variety of interesting career opportunities within the areas of banking and related institutions, personal financial planning, investments, real estate, and insurance. Managerial Finance Managerial finance is concerned financial manager's duties in the business firm. Financial managers actively manage the financial activities  of businesses both financial and non-financial activities, private and public, large and small, profit-seeking and not-for-profit seeking. They active participate in financial planning, credits to customers and organizations, evaluate and also identifying fund raising opportunities for the organizations.

The Role of Business Finance  The importance of business finance is increasing day by day as businesses are expanding across the boundaries. Companies are trying to attract new business opportunities. Business Fiance guides the investors, organizations and companies how they can achieve maximum by investing their money in different sectors, BF guides them how they can save their investment and how they can compete in the emerging markets.  Businesses typically invest in real assets such as land, buildings, plant and inventories (or stock), though they may also invest in financial assets, including making loans to, and buying shares in, other businesses. People are employed to manage the investments, that is, to do all those things necessary to create and sell the goods and services in the provision of which the business is engaged. Surpluses remaining after meeting the costs of operating the business - wages, raw material costs, and so forth – accrue to the investors. Of c...

What is marketing? Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services that satisfy individual and organizational goals. Product is the platform for attracting customers. All organizations are in the business of attracting customers. Can the above two statements be challenged? Is marketing selling OR does it reduce the need for selling? What are markets ? Exchange, division of labor, positive sum relationships, barter, money reduces friction. Evolution of markets 1.     Traditional bazaars 2.     Separation of supply and consumption 3.     Mass Markets / Media 4.     Target Markets / Niche Media 5.     Electronic Markets: Meta Markets Evolution of the Marketing Concept A.    Production Concept Demand for goods and services > Supply ... therefore consumers gladly purchased what was being produ...

Introduction In this lecture we will discuss the significance of management in achieving organizational objectives efficiently and effectively. Managers do this by carrying out the functions of planning, organizing, staffing, leading, motivating, communicating and controlling. Managing is an essential activity at all levels although the managerial skills and roles vary at different organizational levels. This lecture begins with some background knowledge to the discipline of management, and the main purpose is to understand the meaning, process, skills and functions of management. The meaning of management Management has been defined in many different ways by different authors. Here is a sample: - ü   Management is the art of getting things done through and with people in formally organized groups.(Haimann, T.) ü   Management is simply the process of decision-making and control over the actions of human beings for the express purpose of attaining predetermined goa...