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Ask QuestionPosted by Zeeshan Akhter 7 years, 10 months ago
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Posted by Shruti Sharma 7 years, 11 months ago
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Govind Singh 7 years, 11 months ago
Role 1. Profits as ‘Surplus’:
The goal of every business manager is to generate a surplus above cost. In fact, business exists for surplus generation. Profits are only a measure of the surplus of business income over expenses.
Role 2. Profits as Regulator of Efficiency and Effectiveness:
Profits act as a regulator of efficiency in business operations. Those who accomplish objectives with the least cost are able to make the maximum profits). In competitive conditions only profit-making companies are supposed to use their human and material resources better than others.
Role 3. Profits and Resource Allocation:
In a competitive system the allocation of resources is determined by what consumers want to buy and how much they are willing to pay. If people demand more colour TV sets, its price will increase and its production will become profitable. So there will be transfer of resources from other industries to the colour TV industry.
Role 4. Profits as Rent of Capital:
Profits may be taken as pay for use of capital. One of the purposes of profits is to compensate the numerous owners—proprietors, partners or shareholders—for the use of the capital they have invested in a business. Profits also must compensate them for risk-taking. If the business fails the capital may be lost.
Role 5. Profits as Source of Capital:
A major portion of undistributed profits is reinvested in business for expansion and diversification. And one of the major sources of a company’s capital is its profit.
Role 6. Profit and Innovation:
According to J. Schumpeter “profits become the key element in innovation in a dynamic, changing economy, profit-seekers are driven to bring forth new processes and products profits are the lure that keeps the economy seeking new and more efficient ways of meeting real and potential human wants.”
Posted by Sourav Shukla 7 years, 11 months ago
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Saket Jha 7 years, 11 months ago
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Posted by Muskan Oberoi 4 years, 6 months ago
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Sia ? 4 years, 6 months ago
| BASIS FOR COMPARISON | GATT | WTO |
| Meaning | GATT can be described as a set of rules, multilateral trade agreement, that came into force, to encourage international trade and remove cross-country trade barriers. | WTO is an international organization, that came into existence to oversee and liberalize trade between countries. |
| Institution | It does not have any institutional existence, but have a small secretariat. | It has permanent institution along with a secretariat. |
| Participant nations | Contracting parties | Members |
| Commitments | Provisional | Full and Permanent |
| Application | The rules of GATT are only for trade in goods. | The rules of WTO includes services and aspects of intellectual property along with the goods. |
| Agreement | Its agreement are originally multilateral, but plurilateral agreement are added to it later. | Its agreements are purely multilateral. |
| Domestic Legislation | Allowed to continue | Not allowed to continue |
| Dispute Settlement System | Slow and ineffective | Fast and effective |
Posted by Tarun Fuloria 7 years, 11 months ago
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Posted by Ayush S 7 years, 11 months ago
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Kamal Kaur 7 years, 11 months ago
Shalini Koranga 7 years, 11 months ago
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Aman Singh Chhatri 7 years, 11 months ago
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Kaushal Sharma 7 years, 11 months ago
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Posted by Shalu Kumari 4 years, 6 months ago
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Sia ? 4 years, 6 months ago
| BASIS FOR COMPARISON | PUBLIC SECTOR | PRIVATE SECTOR |
| Meaning | The section of a nation's economy, which is under the control of government, whether it is central, state or local, is known as the Public Sector. | The section of a nation's economy, which owned and controlled by private individuals or companies is known as Private Sector. |
| Basic objective | To serve the citizens of the country. | Earning Profit |
| Raises money from | Public Revenue like tax, duty, penalty etc. | Issuing shares and debentures or by taking loan |
| Areas | Police, Army, Mining, Health, Manufacturing, Electricity, Education, Transport, Telecommunication, Agriculture, Banking, Insurance, etc. | Finance, Information Technology, Mining, Transport, Education, Telecommunication, Manufacturing, Banking, Construction, Pharmaceuticals etc. |
| Benefits of working | Job security, Retirement benefits, Allowances, Perquisites etc. | Good salary package, Competitive environment, Incentives etc. |
| Basis of Promotion | Seniority | Merit |
Posted by Shalu Kumari 7 years, 11 months ago
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Arun Mishra 7 years, 11 months ago
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