Theories of capital structure

I have already discussed the meaning of capital structure. Today I will discuss the different theories of capital structure.

1.)    Net income approach: this theory is given by Durand. As per the theory the value of firm can be increased and its cost of capital can be reduced by increasing proportion of debt in its capital structure. The approach is based upon following assumptions:- Continue reading “Theories of capital structure”

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Consumer behavior in marketing

Consumer is now a day treated as “KING” and it is very difficult to understand consumer behavior as consumer behavior is complex. Consumers are rational they think before buying. Therefore the marketer must understand the consumer behavior before starting the marketing strategy. He must study the likes and dislikes of the consumer. All consumers are different in their cultural background, income, life style, personality, beliefs and attitudes etc. But one thing is common as all of them are “consumer”. So the marketing manager must know the answer of following questions. Like:

 What customers like to buy?

When they buy?

How they buy?

Why they buy?

From where they buy?

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Capital structure meaning

Capital structure

To run and manage a company funds are required from the start till the end. If the funds are inadequate the business suffers, if the funds are not properly managed the entire organization suffers. So it is very essential for every firm to have a optimum capital structure for the smooth working of the business. Continue reading “Capital structure meaning”

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What is Financial management

I will discuss the various concepts related to financial management. But first thing we need to understand the definition of financial management. Finance is like the blood for the business as blood is essential for the human body; similarly finance is essential for the business. No business can run without adequate finance. That’s why it is very essential to manage the finances of the business. Financial management means to plan and control the financial resources of the firm. Continue reading “What is Financial management”

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6 modern concepts of marketing

Modern concepts of marketing are broad concepts. It means finding out the consumer and make the goods as per their needs rather than to provide them what the seller has made. Thus it is very essential for the seller to get the answer of the question what are the things which the consumer want? And how these things can be made available to them? Only then he can survive in the market and earn profit. There are 6 modern concepts of marketing which are very important from the point of view of marketer.

a) Production concept: – The companies which use the production concept generally focus too narrowly on their own activities because according to this concept the companies think that consumer will buy the product which comes in the market.

 b) Product concept: – As per this concept companies give importance to the features or the quality of the product because in long run the product exists only with the quality it is giving to the consumer.

  c) Selling concept: – it is not sufficient for the manufacturer to made the goods and wait for the customers. Thus, according to this concept it is very important to inform the consumer about the product which can be done through different ways of promotion.

  d) Marketing concept: – consumer now a day is treated as “GOD”. So it is very important for the manufacturer to produce the product which the consumer wants, so that consumer get satisfaction and manufacturer earns profit.

 e) Consumer concept:- now not only marketing concept is sufficient rather the companies are using consumer concept which means to give attention to individual consumer it can be done through one to one marketing.

 f) Societal marketing concept: – this concept means that company should not only work for the consumer but also for the society. So the company should make balance between company’s profits, consumer wants and society welfare.

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