Found 597 Articles for Management

The major differences between entrepreneurship and management are as follows −EntrepreneurshipManagementEntrepreneurship refers to creating a company/firm by considering financial risk.It motivates to start a business.It includes start-ups , venturesTagged as owner.The rewards come in form of profits.It accepts risks.It sets goals.The decisions are made on personal perception.Includes innovator.The process is centralised.Opportunity recognition, feasibility analysis, business planning and runningPart of managementContemporary aspects includes social entrepreneurship, venture growth etc.Management refers to doing business activities by a group of people or by organized groups.It motivates to manage business.It will take care of the ongoing operationsTagged as an employee.Employees get their salaries.It does not ... Read More

The major differences between time and money are as follows −TimeIt is defined as hours spend on work.It is measured in terms of seconds, minutes, hours.It is more valuable than money.Its value remains constant.The value earned differ from person to person.It is neither earned nor purchased.It is not constant and can’t be saved.It is limitedIt plays an important role in earning.It can’t make future contingency.We can’t control time.MoneyIt is defined as an amount earned for work done.It is measured in terms of value, exchange and payments.It depends on time.Its value decreases with time.The value of money remains same for all.It ... Read More

The major differences between shareholder and stakeholder are as follows −ShareholderThey are people who owns the share of the company.They act as owners and are a subset.There are limited shareholders for a company.A company includes equity and preference shareholders.They focus on investment.They have direct impact on financial performances.They have single dimension.The success is measured by value enhancement.Their main aim is to increase profitability, increase dividends, increase share price and maximise shareholders value.StakeholderIt’s a party who have a stake in a company.They are interested parties and are a super set.Every company/organisation have stakeholders.Stakeholders includes shareholders, creditors, customers, suppliers etc.They focus on ... Read More

The major differences between credit and debit are as follows −CreditIt decreases in assets and increases in liabilities.It indicates the amount withdrawn.It represents in the right side of T format ledger.It is recorded as GIVER in a personal account.It is an amount What Goes Out in real account.It records all incomes and gains in Nominal account.DebitIt increases in assets and decreases in liabilities.It indicates an increase in asset/amount.It represents the left side of T Format ledger.It is recorded as RECEIVER in personal account.It is an amount What Goes In, in real account.It records all expenses and losses in Nominal account.Read More

The major differences between direct cost and indirect cost are as follows −Direct costIt is the cost, which is directly/easily referable to the product/services.It is easily calculated.It is attributable, has variable cost and can be easily identified.It is expended on specific cost object.All direct costs are known as prime cost.Examples − raw material cost, transportation cost etc.Indirect costIt is the cost that is not easily referable to a particular service/product.It is not easily calculated.It is not attributable, has fixed cost and is difficult to identify.It is expended on multiple cost objects.All indirect costs are known as overhead cost.Example − Administration, ... Read More

The major differences between loan and mortgage are as follows −LoanIt has high interest rates.It can be secured/unsecured.It is not collaterally backed.The loan period is less as compared to mortgage.There are few formalities in case of unsecured loans when compared to mortgage.It requires less documentation.Examples − open ended loans, close ended loans, student loans, payday loans etc.MortgageIt has low interest rates.It is always secured.It can be backed collaterally.The loan is period is more as compared to loan.There are strict measures for loans in mortgage.It requires more documentation.Examples − VA Loan mortgage, reverse mortgage, adjustable rate mortgage, fixed rate mortgage etc.Read More

The major differences between forex and stock market are as follows −ForexThe size of the market is large.It has high leverage as compared to stock market.It has no qualifying requirements.It is less regulated than stock market.It has high liquidity.It is open for 24 hours.The commissions are minimum or zero.The focus is narrow.The buying/selling involves multiple currencies.Stock marketThe size of the market is less.It has less leverage as compared to forex.There are certain qualifying requirements.It is more regulated than forex.It has less liquidity.It is open for 8 hours only.The commissions are high.It has wide focus.The buying/selling involves single currency.Read More

The major differences between economic cost and accounting cost are as follows −Economic costIt has monetary value of all resources.It refers to opportunity cost.It focuses more on implicit cost.It is relevant for decision making.It is forward looking.It is not objectively verified.It estimates the cost of alternatives sacrificed.Accounting costIt is based on explicit costs.It is present in the financial statements.It is backward looking.It is objectively verifiable.It tells about financial position of a firm.It is used to make tax payments.

The major differences between accounting profit and economic profit are as follows −Accounting profitIt gives true financial health of a company.It tells about profitability of the company.No special terms are needed here.It is more practical than economic profit.It’s a short term phenomenon.It is determined by GAAP.It is used for income tax and financial performance.It has single entity/accounting period view.The formula to calculate accounting profit is as follows &minus accounting profit = total revenue – expensesEconomic profitIt doesn’t give true financial health of a company.It tells about effective allocation of resources.It includes special terms such as residual value, inflation level changes ... Read More

The major differences between domestic finance and international finance are as follows −Domestic financeThe currency exposure has no impact.It is exposed to same economic and political environments.It is exposed to same tax laws and regulations.Stakeholders are of same beliefs, languages etc.Knowledge of foreign exchange derivatives is not required.Challenges are limited.Maintenance of separate books are not required.International financeThe currency exposure has impact.It is exposed to different economic and political environments.It is exposed to different tax laws and regulations.Stakeholders are of different beliefs, languages etc.Knowledge of foreign exchange derivatives are required.Challenges are limitless.Maintenance of separate books are required as per GAAP/AS.Read More