Professional Documents
Culture Documents
FINANCIAL ANALYSIS
• UNIT – I
• Introduction to Business and Economics:
• Business: Structure of Business Firm, Theory of
Firm, Types of Business Entities, Limited Liability
Companies, Sources of Capital for a Company,
Non-Conventional Sources of Finance.
• Economics: Significance of Economics, Micro and
Macro Economic Concepts, Concepts and
Importance of National Income, Inflation, Money
Supply in Inflation, Business Cycle, Features and
Phases of Business Cycle. Nature and Scope of
Business Economics, Role of Business Economist,
Multidisciplinary nature of Business Economics.
• Business is an economic activity, which is
related with continuous and regular
production and distribution of goods and
services for satisfying human wants.
• The shopkeeper, the wholesaler, the
manufacturer are doing business and
therefore they are called as Businessman.
Definitions of Business
• Definition
• A public corporation is defined as a ‘body corporate
create by an Act of Parliament or Legislature and
notified by the name in the official gazette of the
central or state government.
• It is a corporate entity having perpetual succession,
and common seal with power to acquire, hold, dispose
off property, take legal action and be take legal action
by its name”.
• Examples of a public corporation are Life Insurance
Corporation of India, Unit Trust of India, Industrial
Finance Corporation of India
• Features
• A body corporate
• More freedom and day-to-day affairs:
• Freedom regarding personnel:
• Financial autonomy:
• Run on commercial principles:
• Advantages
• Independence, initiative and flexibility:
• Scope for Redtapism and bureaucracy minimized:
• Public interest protected:
• Employee friendly work environment:
• Competitive prices: Public accountability:
• Disadvantages
• Continued political interference:
• Misuse of Power:.
• Burden for the government: