Retained Earnings : Meaning, Features, Advantages and Limitations - GeeksforGeeks (2024)

Management by Objectives (MBO) | Meaning, Objectives, Features, Advantages and Limitations

What is Management by Objectives (MBO)?Management by Objective is a process whereby the superior and the subordinate managers of an enterprise jointly identify its common goals. It is a rational and systematic approach to management wherein measurable goals are set up in consultation with subordinate managers and the contribution of each individual

Cost Concept of Accounting | Features, Advantages and Limitations

What is Cost Concept in Accounting?Cost concept in accounting states that the assets should be recorded at the cost at which the business acquires them, i.e. historical cost. Assets in the balance sheet should show the acquiring cost unless otherwise stated. Under the cost concept of accounting, all the assets are recorded at the original cost irre

Budgetary Control: Meaning, Objectives, Advantages and Limitations

What is Budgetary Control?Budgetary control refers to the process of planning, controlling, and monitoring the organization's revenue and expenses to ensure that they align with the budget. It involves creating budgets for various business activities, monitoring actual performance against the budget, identifying variations, and taking corrective ac

Organisation Chart: Meaning, Types, Advantages and Limitations

What is an Organization Chart?An organizational chart, often referred to as an org chart, is a valuable management tool that visually represents the hierarchical structure and relationships within an organization. It offers a clear and organized depiction of roles, positions, and reporting lines. The primary purpose of an organizational chart is to

Team Building: Meaning, Process, Advantages and Limitations

What is Team Building?Team building is a crucial process that aims to strengthen the effectiveness and efficiency of a group of individuals working together towards a shared goal. It involves the formation of cross-functional teams that engage in regular interaction, mutual influence, and information sharing to achieve collective objectives. The co

Planning: Meaning, Features, Importance and Limitations

What is Planning?Planning is a blueprint of the course of action to be followed in the future. It is also a mental exercise that requires imagination, foresight, and sound judgment. It is thinking before doing. It is a preparatory step and refers to detailed programs regarding the future course of action. Simply put, planning is the basic managemen

Ratio Analysis- Importance, Advantages and Limitations

A financial ratio, also known as an accounting ratio, is the size of two numerical values obtained from an organisation's financial accounts. There are several standard ratios used in accounting to try to analyze the overall financial state of a firm or other entity. Accounting ratios, also known as financial ratios, are used to calculate a company

Line and Staff Organisation: Meaning, Features, Suitability, Advantages and Disadvantages

What is Line and Staff Organisation? Line and staff organisation is a way for businesses and organisations to structure themselves. It has two main parts: the line structure and the staff structure. The line structure is all about the chain of command. It includes the managers who make decisions and oversee the day-to-day work. The employees report

Going Concern Concept | Features, Significance and Limitations

What is Going Concern Concept?Going Concern Concept means an organisation would continue its business operations indefinitely till the concept of bankruptcy and/or liquidation invades. This concept assumes that a business will continue to do its operations for the foreseeable future or at least for the next 12 months. The going concern concept has

Odoo Review 2024: Features, Benefits, Limitations and Pricing

Odoo is an open-source Enterprise Resource Planning (ERP) platform that streamlines operations by consolidating sales, inventory, accounting, and more into a unified system. Its open-source nature fosters a collaborative environment, leading to continuous development and innovation. Odoo offers a broad spectrum of modules spanning sales, marketing,

Classical Approach to Management: Features, Uses and Limitations

The classical approach, also known as, the traditional or empirical approach, emerged through three main streams: scientific management, administrative theory, and bureaucracy. Scientific management was pioneered by engineers and technicians like E.W. Taylor, Harrington Emerson, Henry Gantt, Frank Gilbreth, and Lillian Gilbreth. Their primary focus

Real Estate Investment Trust (REIT): Criteria, Working, Types, Advantages & Limitations

What is Real Estate Investment Trust (REIT)?Real Estate Investment Trust (REIT) is an investing platform that enables investors to invest in real estate assets without actually buying, owning, or managing physical property. Based on the model of Mutual Funds, REITs also pool the money of many investors together and invest the fund collected into in

Long-Term Financing : Sources, Importance, Advantages & Limitations

What is Long-Term Financing?Long-term financing represents those borrowings or loans which are offered for a period greater than one year. It can be done by issuing equity shares, debt financing, long-term loans, bonds, or leases. Long-term finance is taken either for big projects, company expansion, or financing. Usually, long-term financing deals

Bills of Exchange: Meaning, Features, Parties, and Advantages

What is Bill of Exchange? A bill of exchange is a written order that one party receives from another requiring them to pay the other a specific amount of money, either immediately or at a later date. It is important that such an order of payment should be unconditional and be accepted by both parties concerned, i.e., the creditor as well as the deb

Public Private Partnership (PPP) : Meaning, Features, Applications, Advantages and Disadvantages

A legally binding contract between the government and a private business organisation to provide public assets and public services for the benefit of the general public is known as a Public-private Partnership (PPP, P3, or P3). PPP is a partnership between private and public enterprises regarding infrastructure and other services. For instance, The

Diagrammatic Presentation of Data: Meaning , Features, Guidelines, Advantages and Disadvantages

Diagrammatic Presentation of Data The technique of presenting statistical data in the form of diagrams such as bar diagrams, cartograms, pie diagrams, and pictograms is known as the Diagrammatic Presentation of Data. Statistics performs an important function by presenting a complex mass of data in a simple way that makes it easier to understand. Cl

Project Organisation: Meaning, Features, Advantages, Disadvantages and Suitability

What is Project Organisation? Project Organisation is like a roadmap for managing a project. It tells everyone who's involved, what their job is, who they answer to, and how they should share information. One typically has a project leader who makes sure everything goes according to plan. Then there's the project team - the people who do the work t

Matrix Organisation: Meaning, Features, Suitability, Advantages and Disadvantages

What is Matrix Organisation? A matrix organisation is a unique way of structuring an organisation where employees have dual reporting lines. It combines functional departments, like marketing or engineering, with project teams. This setup allows employees to work under a functional manager for their career development and expertise, while also havi

Functional Organisation: Meaning, Features, Suitability, Advantages and Disadvantages

What is Functional Organisation? A functional organisation is a way of organising an organisation or group based on the different tasks or jobs it needs to do. Instead of having everyone mixed, people with similar skills or roles are put into separate departments. Each department focuses on one specific area, like marketing, finance, or operations.

Line Organisation : Meaning, Features, Suitability, Advantages and Disadvantages

What is Line Organisation? Line organisation, also known as a scalar organisation, is a traditional and straightforward organisational structure with a direct chain of command. It operates on a simple and linear framework, where each employee reports directly to their immediate superior. This structure ensures clear lines of authority, minimises co

Committee Organisation: Meaning, Features, Suitability, Advantages and Disadvantages

What is Committee Organisation? A committee organisation refers to a structure where committees are established to assist decision-making and problem-solving processes within an organisation. These committees are composed of individuals with specific expertise or knowledge in relevant areas and are tasked with addressing specific management functio

Small-cap Stocks | Meaning, Features and Advantages

What are Small cap Stocks?Small-cap stocks typically refer to companies with a relatively low market capitalisation ranging between INR ₹500 crore to INR ₹2,000 crore. In terms of total market value, these companies are typically classified as lower than large-cap and mid-cap companies. According to the definition, small-cap companies in India may

Real Estate Funds | Meaning, Features, Advantages and Risk Associated

What are Real Estate Funds?Real Estate Funds can be described as a pool of funds collected from various investors and invested in the real estate market. Real estate has long been considered a sound investment option, offering the potential for both income generation and capital appreciation. However, direct investment in real estate often requires

Online Stores: Meaning, Features, Advantages and Disadvantages

What are Online Stores?Online stores, also known as e-commerce stores or virtual stores, are digital platforms that allow businesses and individuals to sell products and services over the Internet. These stores provide a virtual space where customers can browse, select, and purchase items online. Online shopping has become increasingly popular due

Forecasting: Meaning, Nature, Planning and Forecasting, Importance and Limitations

What is Forecasting?Forecasting involves making educated guesses about future events that could affect a company. Businesses can predict sales, finances, customer demand, and market changes by examining past data, trends, and patterns. Forecasting helps companies make decisions, plan, and manage risks. Methods include analyzing historical data and

Gilt Funds - Meaning, Features, Suitability, Advantages & Disadvantages

What are Gilt Funds?Gilt funds are defined as a type of fund that mainly invests in government securities. These securities are regarded as one of the investment choices because they come with a guarantee from the government. Gilt funds operate within the realm of debt funds offering investors an opportunity to participate in government debt instru

Bank Credit: Meaning, Types, Features, Purpose & Advantages

What is Bank Credit?The amount of money made available to a person or business by a banking organization in the form of loans is known as bank credit. Bank credit refers to the entire amount of money that a person or corporation may acquire from a financial institution such as a bank. Bank credit is determined by the borrower's capacity to repay an

Computerized Accounting System: Meaning, Features, Advantages & Disadvantages

A computerized accounting system is a software application that automates financial records and reporting processes to make them faster, more accurate, and easier to manage. A company’s accounting system is the core of its financial management, as it processes all transactions within the organization. It reduces the manual entry of data, eliminates

Incidental Expenses | Meaning, Types and Limitations

What are Incidental Expenses?Incidental expenses can be defined as the minor costs and non-budgetary expenses that occur while conducting any business. Incidental expenses provide the necessary support to the business in the form of secondary expenses. Incidental expenses are generally not backed up by proof, so it is difficult to track and record