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Adjacent segment strategy

Generally diversification is classified in Four-way. 

Salary of office manager an example of fixed cost. 

The purpose of advertising is: 

• The attract potential buyers 
• The inform & guide customers  and
• Advertising of the product 

The following aspects must have a mention in the project report:

1. Site:- The project site is the personal belonging or taken on lease? Is the project site is located in the approved industrial area? Is it adequate for the proposed project? 

2. Raw-Material:- Is the raw material to be imported from abroad? If yes, has the license been obtained for it? What are the sources of raw material? Will it be available at reasonable rate? 

3. Power:- The need of the quantity of power, the approval for its consumption, stability in the power supply and various consumption rate are referred to use. 

4. Skilled labour:- Is the skilled labour available in that specific area? It not. What provision has been laid down to import than training?

Factory cost refers to the total cost required to manufacture goods. This concept is the basis for several cost accounting analysis that is called factory cost.

A brand is a product service or concept that is decided by entrepreneur and use with product name. Brand may be word, alphabet, symbol, design etc.

A good packing characteristics are the following:- 

1. Attention- arresting:- Packing should be such that captures the people”s attention. In the modern competitive era, it is the package and its characteristics which are very important. 

2. Identity:- A package must be easily identifiable that means that just looking at it once, customer easily makes it out. 

3. Interest-evoking:- The package must be like that it evokes an immediate interest towards the product and sustains that interest. 

4. Creating desire:- Packing must be so attractive as it creates a passionate desire in the onlooker”s mind to possess it.

Social Structure is composed of Functional division of Community.

Modernisation improves is Capacity.

Product mix is also known as assortment refers to the total number of product linear that a company offers to its customer.

Modernisation Improves Capacity.  

The process of innovation in entrepreneurship means Introduction of a new product, Use of a new method of production.   

Price Policy is In favour of consumer, In favour of government and In favour of producer manufacturing.

Current assets refers to those assets which continue charging rather than being fixed, viz, cash in hand, cash at bank, sundry debitors, Bills receivable, closing stock, paid income, marketable securities.

There are two types of Environment:-

1. Internal Environment: - Those types of environment which has full control of entrepreneur i.e., land, production, capital, labour etc.

2. External Environment: - Those types of environment which has no control of entrepreneur such as competition, customer etc.

Characteristics of Management:- 

(1) Management is a process: - Management is a process that includes various activities which lead to the attainment of predetermined objective. It is social phenomenon because managing of the activities is linked to the people who manage them. Management in also an economic activity because it uses economic sources. 

(2) Management is a group activity: - Management is a teamwork or the management always spurs a joint endeavour. It is group of people that operates that the activities of an enterprise and the attainment of the objectives is possible by the collective efforts of a group of people rather than by an individual”s efforts. 

(3) Management is a Continuous activity:- In business there is a constant Endeavour of commission and omission of activities is therefore, known as perpetual or a continuous phenomenon. The size and the varying circumstances, has further complicated the process of management. 

(4) Management is a an art as well as science: - Management is both an art and science, as well as and are so well knitted, that are inseparable. As an art, the management refers to behavioural service efficiency, skill, constructive thoughts ideas and development through practice etc. Thus, management is a dichotomy of art and science. 

(5) Management is a social process:- In business, management is related to the human aspect. All the workers is an organisation are the organs of the society. Thus, their leadership and management are the part of social activities. In this context, Brech remarks, “Presence of human element in management is its testimony of a social activity.” 

(6) Management is a profession: - In view of the constantly growing complexities is any business, depends no longer, on the general knowledge, common sense and experience only but deep knowledge of in management is the need of the hour. In management science, an extra knowledge, training facility, since of dedication, good behaviour sense and code of conduct, all in totality along with all the essential characteristics of a profession are involved. Thus management is a profession of which the education is imparted in various universities and academic institutions.

In a successful enterprise the pricing policy must be open to appraisal from time to time. While pricing for profit is justifiable, even then an entrepreneur has to take into account several factors before determining the prices, like possible reaction of the competitor's legal limitations consumers reaction social objective the consumers aspiration and probable development etc. Every firm is known for its price erupted this should not get adversely affected on account of growth and development. An entrepreneur is supposed to think in terms of non price competition.

Product companies are always looking to be on the top of marketing so it is very necessary to improve in product. Improved in product in ways of colour, variety, size etc. In that case the cost of product is reduced and demand of customer impressed.

In normal ways there are two types of opportunities:-

i. Existing opportunities in the environment: - Some opportunities are exist in our environment like there is need for some changes.

ii. Created opportunities:- Those opportunities which does not exist hence we have to create in depended on situation. Like- T.V., Computer etc.

Capital is of two kinds:- 

i. Fixed capital 

ii. Working capital 

i. Fixed capital:- Fixed capital is also known as fixed assets which refers to that part of the capital which is invested on fixed assets, i.e. land, building, machinery, furniture and equipments etc. According to Flaney and Miller, “Fixed assets are assets of relatively permanent nature used in the operation of business and not intend for sale.” The reason of terming it is fixed capital because its price remains the same and permanent rather it is used in the long term which lacks to liquidity. The fixed capital is obtained by issuing shares debentures and securities and securing long terms loans from various financial institutions. 

ii. Working Capital:- Working capital refers to the excess of current assets on current liabilities. In other words, if the sum of current liabilities is subtracted from the total sum of current assets, whatever remains its termed as working capital. Current assets refers to those assets which continue changing rather than being fixed, viz; cash in hand, cash at bank, sundry debtors, closing stocks, bill receivable, marketable securities, prepaid expenses etc, where the current liabilities of which the immediate repayment is to be made viz; Bank overdraft, creditors, bills payable, unpaid expenses etc.

The relationship between opportunity and entrepreneur is similar to the water fish relationship. Fish has no chance of survival in absent of water that looks for its food in water and lives in it. To an enterprising seeing fish water is its opportunity and a life-death relationship exists between them. After obtaining various relevant information”s an entrepreneur evaluates the reality and then he determines and ensures to establish a new enterprise after dual consideration in term of managing resources for it. 

i. Mode of Identification: - An entrepreneur by exercising his prudence and perception identifies certain opportunities and starts contem planting on various aspects under the prevailing environment. Taking into account the existing circumstances newly innovative ideas are conceived in his mind and he begins to analyse and weigh all the pros and cons before obtaining the relevant information with regard to his planning of the project on his mind. After deliberating over all the relevant aspects he arrives at a firm decision now what to do next. 

ii. Personality of the Innovator:- After determining “what to do next,” an entrepreneur now comes to determine his modus operandi on the project at hand and the removes ahead and establishes the new project. As such, the job of an entrepreneur being with the ideas which lead to the establishment of the project. But not only this, all in not yet over, rather his actual work starts now onwards as he is supported to ensure the viability of his newly established project and its sustenance in the time to come.

Only producing the goods is not sufficient but it is compulsory to reach them to the last consumers. The service of the various kinds of mediators such as whole saler, retailer, agents taken by the producer or manufacturer for making the things to reach last consumers are called channels of distribution.

a. No separate legal entity

Characteristics of partnership: 

1. Two or more persons: Partnership is the outcome of a contract. 

Thus: 

(a) There must be at least 2 persons to enter into contract to form partnership.

(b) Minors cannot form a partnership firm as they are incompetent to enter into contract but can be admitted to the benefits of a running firm. c) If these people intend to do banking business, the maximum number can be ten otherwise twenty for the other business. 

2. Agreement: The relation of partnership arises from contract and not from status. Though oral agreement is even acceptable but in practice written agreement is much more advisable as disputes can be resolved better with it. 

3. Profit sharing: The objective of the business is to make profits and distribute the same amongst partners. Any association initiated to do charity work is not partnership. 

4. Unlimited liability: Mostly, the liability of the partners of a firm is unlimited. Their personal properties can be disposed off to pay the debts of the firm if required. The creditors can claim their dues from any one of the partner or from all of them, meaning partners are liable: Individually and Collectively 

5. Implied authority: There is an implied authority that any partner can act on behalf of the firm. The firm stands bound by the acts of partners. 

6. Mutual agency: The business of partnership can be carried on by all the partners or any one of them acting for all. Thus, every partner is principal as well as agent of other partners and of the firm. 

Thus, 

(i) Each partner is liable for acts performed by other partners, 

(ii) Each partner can bind other partners and the firm by his acts done in the ordinary course of business. 

7. Utmost good faith: Every partner is supposed to act honestly and give proper accounts to other partners. Thus, mutual faith and confidence in one another is the main strength of partnership. 

8. Restriction on transfer of shares: No partner can sell or transfer his share to anybody else without the consent of the other partners. By giving a notice for dissolution of the firm, a partner can show intention to discontinue as partner. 

9. Continuity: A partnership continues up to the time that all partners desire to continue it. Legally, a firm dissolves on the retirement, death, bankruptcy lunacy, or disability of a partner if not otherwise provided for in the partnership deed.

1.Individual ownership: This business is exclusively owned by a single person. 

2. Individual management and control: All affairs are managed and controlled by the sole proprietor. 

3. Individual financing: All investment is made by the proprietor. Though, if required he/she has access to loans and debts to procure funds for business. 

4. No separate legal entity: Legally, the proprietor and proprietorship are one and the same business and owner exists together, thus with owner's death, business too dies. 

5. Unlimited liability: The proprietor is liable/responsible for all losses arising from business. In case the business assets are insufficient to pay off liabilities, his/her personal property can be called upon to pay his business debts. 

6. Sole beneficiary: The sole proprietor alone is entitled to all the profits and losses of business. So, he puts his heart and soul to increase his profits. 

7. Easy formation and closure: Sole proprietorship are subjected to minimum legal formalities and regulations both at time of commencing and/or closing. 

8. Limited area of operation: This form of business generally has a limited area of operation due to: limited finance availability limited managerial abilities

Break-even analysis is a technique which is helpful in planning and control of profit. It is helpful in making a relation between profit and cost. Following are some points which clarify the utility of break-even point.

(1) Diagnostic tool:- It present diagnosis of reasons before analysis management.

(2) Risk Evaluation:- Break-even analysis proves very useful in the evaluation of risk assessment. It is very helpful regarding the decision of order acceptance shift-work, sale mixture, purchase and make etc.

(3) Profit Improvement:- The break-even point and profit volume ratio are calculated under break-even analysis and the improvement of the profit is obtained on its basis.

Break-even analysis is based on three following assumptions:-

(1) The variable cost per unit is fixed production-oriented but undergoes a transformation proportionately in relation to a product.

(2) All the elements of cost are divided into fixed or variable cost.

(3) The stock valuation is restricted to a certain cost.

(4) There is always coordination between production and sale.

(5) This analysis is related to one product and in the event of several products sales mixture is transformed into cost.

(6) The cost and receipt are influenced by the volume of production.

In economics and business, specifically cost accounting the Break-Even point is the point at which cost or expenses and revenue are equal. There is no net loss or gain and one has “broken even point.”

“A Plan is a trap to capture the future.” This statement is of Allen.

1. It helps in setting profit goal and sales target. 

2. In a manufacturing environment, it helps in determining the products that are not contributing to meet the fixed expenses and thus brings up the item for discussion in management meetings about its continuity. 

3. Breakeven point is the level of sales (or revenue generated) that equals all the expenses required for generating that revenue. There is neither loss nor profit. It helps the organisation to determine the level when will it turn profitable.

Following are the main features or nature of planning : 

(1) Definite Objective and Goal: The planning is done for the fulfilment of determined objective and goal. Therefore, every planner always keeps this goal in mind and plans as per these goals. 

(2) Forecasting: The other important feature of planning is to think about future i.e. forecasting. For it forecasting such as one-year are made.

(3) Unity: Only one plan can be implemented at one time because there will be confusion, illusion and disturbance due to two different plans. 

(4) Selection of the Best among Alternative courses of Action: There are various goals, policies, methods and programmes before the manager. The best alternative is to be selected to complete them. The success of the enterprise depends almost on the basis o the selection. 

(5) Pervasiveness of Planning: Planning is needed at very level of the organisation, let any person be the chairman or the ordinary foreman of the company. As the level of the organisation will be higher, the field of planning will be more v 

(6) Planning is a continuous and Flexible Process: It is also an important feature of planning that there should be continuity and flexibility in it so that necessary changes could be made in it as per the changed circumstances. 

(7) Primary Function: Planning is a primary function of management. Planning is given first and foremost; place in any management process, all other works are completed only after planning.

Planning is Short – term,  Middle – term and Long – term. 

Under market penetration, An asset “scoter” is sold for cash.

In simple words, cost means the price of a product or commodity Dictionary meaning of cost is payment made is lieu of something. But in cost accounting the meaning of cost is different from price various scholars have definer cost in the following ways: 

(1) According to Gordon Shilling Law, "Cost is the resource that has been or must be sacrificed to attain a particulars objective.” 

(2) According to I.C.M.A, London ."Cost is the amount of expenditure (actual or notional) incurred on or attributable to a specified thing or activity." 

From the above definitions it is clear that cost refers to the amount of expenditure, whether actual or notional incurred on .a specified thing or activity. This could be the expenditure incurred on production sale or in rendering services of any nature or in execution or completion of any work of assignment. In other words cost is that total expenditure which is incurred on production of any product or service or is related to. its sales or marketing. For example- the material required to build a wooden table, such as- wood, nails and cost of polishing, wages paid to the carpenter and other related expenditure, such as –Factory rent and electricity expenditure etc. The total cost to manufacture a take shall be inclusive of all these costs. It means that the cost does not include the amount of profit.

Working capital may be classified into:

• Permanent working capital
• Variable working capital and 
• Regular and seasonal working capital

Conglomeration is a technique to Diversity in other areas.

Control is a function of instruction Employment.

Long –term loan bears are Fixed rate of interest.

Naked debentures are Unsecured.

Safety is not responsible for capital market.

Under-capitalization price of shares decreased.

Correct Answer is : (b) leave

Management in India is Necessary.

Participation of employees is financial encouragement. 

In India the trademark Act was passed in 1940. 

Primary element of succession of management is Excess capital. 

Technology implies change of its sources – skill, technology, equipment into production by organisation according to J.K Gailbraith, “Technology is used for accomplishing business activities by exploiting the scientific methods and others organising skill and for acquiring this knowledge, can be defined in this way”. On the basis of the aforesaid definition it can be inferred that technology is a method to the used for concluding an activity and solving this problems in relation to the products or services.

Working non-government organisation of India is Common cause.