Monday, 5 August 2019

Meaning of Blog, Blogger and Blogging

Do you know what a blog is?

If not, you have come to the right place. A blog is a website in simple language.

Definition of Blog-
A blog is an online journal or informational website that displays information in reverse chronological order, with the latest posts appearing first. It is a platform where an author or a group of writers share their views on an individual topic.

What is blogging?
Blog writing is called blogging.

What is a Blogger?
A person who writes a blog is called a blogger.

It is important to clarify here that a website created by Google to write blogs is also called 'Blogger'. Anyone can do blogging on Blogger for free. This blog post is written on Blogger itself.

What is the meaning of blogpost?
Blogpost means an article written on a blog.  This article is an example of a blog post.

Blog and website-
Most people still wonder if there is a difference between a blog and a website. What is a blog and what's a website?  We all know what is a website. On many websites, blogs are only a part of that website. But there are many websites where only blogging is done. So, every blog is a website, but not every website is a blog.  You must have also seen many websites which do not have any blogs.

Why are many people today blogging?

Today most people are creating a blog for various reasons.  Every human has its own story to tell to the world. By blogging, bloggers can communicate with a large number of people.

Why is blogging so popular?

The blog gives you the opportunity to talk about any topic and express your opinion.  And you can also earn some money (through advertising) from the blog.

Companies use blogs to increase (internet users') traffic to their website. They do so by giving users valuable information (which they might be searching online) on their blog. Blogs also help these websites to rank higher in google search results.

I hope you have got a good knowledge about blogging through this blogpost.

Friday, 26 July 2019

F.W.Taylor's Scientific Management-Principles and Techniques | What is Taylor's Scientific Management?

Fredrick Winslow Taylor's Scientific Management-

Who was Fredrick Winslow Taylor?

F. W .Taylor was an American Mechanical Engineer and a Management Consultant.

F. W. Taylor had developed the theory of scientific management in the year 1911. Due to his scientific approach towards management, he is also called as Father of Scientific Management.

A couple of these principles are very similar to a few principals of management coined by Henry Fayol.

According to Taylor. all the management problems should be solved in a scientific manner and not by trial and error method.

So let us see what are these principles of scientific management devised by Fredrick Winslow Taylor

1. Principle of development of science for each part of the job.

There may be many approaches to do a particular job or task. However, according to Taylor, there is always only one best way to do a particular job or a task.

Managers should make use of scientific methods to find out which is the best way to do a particular job or task before assigning that job or task to the workers.

According to him, managers should not make use of guesswork to find out the best way of doing a particular job or task before assigning it to the employees or the workers.

The managers should make use of scientific methods to calculate the time required to do each particular job. This can be done by observing the employees or workers when they are doing a particular task or job.

The managers should make use of scientific methods to determine how much work an employee can do in a day and they should use the scientific methods to find out the best way of doing a particular task or the job.

The managers should not make use of any thumb rule or guesswork while trying to find out the best possible way to do a particular job. Instead, they should apply scientific methods like data collection and analysis of the data before determining the best way to perform a particular job.

According to Taylor, even the selection and training of employees and workers should be done using science.

As per Taylor, the managers should recruit employees on the basis of tests and interviews. Before recruiting any person for a particular job, the managers should clearly define the qualities that, that person should possess for performing that job or task. This will make the selection process very easier.

Taylor says that the managers should keep on training their employees from time to time in order to make sure that they give the maximum output by working in the most efficient manner.

2. Principle of Cooperation between Management and Employees -

As per F.W.Taylor, there should be proper cooperation between management and the employees of the organisation.

The cooperation between management and employees is key to the success of an organisation.

No organization can succeed in the absence of proper co-operation between the management and employees.

Both management and employees should work hand in hand as a team for the achievement of organisational goals.

3. Principle of the division of responsibilities -

According to Taylor, there should be a balance in the division of work and responsibilities among management and employees.

Noone should be overburdened with work or responsibility.

The work and responsibilities should be assigned to various employees as per their skills and abilities.

The managers should be given the responsibility of decision making and planning, whereas the workers or the lower level employees should be given the responsibility of execution of those plans.

4. Mental revolution -

According to Taylor, in most organizations, there is usually some friction that happens between managers and employees.

The mental revolution means a complete change in attitude in the way both management and employees deal with each other.

As per Taylor, the management should provide fair remuneration to all employees and also good working conditions for them.

In turn, the employees should give their hundred percent while at work and ensure that there is maximum productivity.

The employees should also ensure that there is maximum utilisation of organisational resources. They can do this by minimising the wastages.

5. Maximum prosperity for employer and employees -

As per this principle, scientific management should aim at maximum prosperity of both the employer as well as employees.

The maximum prosperity of employer, as well as employees, can be achieved only if-

a. There is a good co-operation between management and employees

b. There is a proper division of responsibility & tasks


c. There is a complete mental revolution within the organisation.

In other words, the maximum prosperity of employer and employees can be achieved only if the previous three principles are properly implemented.

Saturday, 20 July 2019

Types of Partners in a Partnership Firm - PPT

Powerpoint Presentation on Various Types of Partners in a Partnership Firm

This PPT exaplains (in detail) following different types of partners -

Types of the Partners –

-Active Partner

-Sleeping Partner

-Nominal Partner

-Minor Partner

-Partner in Profits only

-Partner By Estoppel

Sunday, 26 May 2019

Accounts - Not for profit -  the features of Receipt and Payment Accoun


What are the features of Receipt and Payment Account?

Answer :

The following are the features of Receipt and Payment Account:

1. Nature: It is a Real Account. It is a summarised version of Cash Book.

2. Nature of Transactions: It records only cash and bank transactions. Transactions other than cash and bank like depreciation, loss/ profit on the sale of assets, etc. are not recorded in this account.

3. No distinction between Capital and Revenue items: It records all cash and bank receipts and payments of both capital and revenue nature.

4. Opening and closing balance: It begins with the opening balance of cash and bank and ends with the closing balance of the cash and bank (balancing figure) at the end of the accounting period.

5. Purpose: It reveals the cash position of an organisation. It helps to ascertain the total amount paid and received during an accounting period.

Thursday, 4 October 2018

Process of availing a home loan | What is the process of home loan?

Are you looking for a home loan but don't know where to start?

If yes, you have reached the right place.

Every person has a dream to have a house of his own. But with time the prices of houses increase rapidly and in such a situation it seems impossible for a middle-class person to take home.  But a home loan can be a very good option for buying a home.

Process of availing a home loan is very easy. You can do it from home. Most private banks provide you with doorstep service.

You need to first decide which bank you want to apply for. You can do research through the internet or call up the call centres of banks or inquire online on their websites. Also, you can take advice from any of your friends, relatives or colleagues about their opinion on where you should be applying for the home loan.

Once you have decided where to apply, you can get in touch with that bank for the application of home loan. 

You need to submit all the necessary documents (required as per the lending policy of the bank) along with the application form to the bank. You also need to give a cheque of processing fee along with your home loan application.

Generally, the following are the documents that you need to submit while making an application for a home loan-

For salaried borrower -
1. Last 3 months' salary slips
​2. Last 6 months' bank statement
3. Latest Form 16
4. Pan Card 
5. Address Proof

For Self Employed Borrower -
1. Last 3 years' Income Tax Returns
2. Last one year's bank statement
3. Pan Card
4. Address Proof

The self-attested photocopies of above-mentioned documents should be submitted along with the home loan application form.

On submission of the above documents, the bank will conduct verifications of your current residence and office. They will also do other internal checks like generating your cibil report (credit report), verifying whether documents provided by you are genuine or not etc. 

Post this, they will have a personal discussion/interview with you. During the interview, they will study your profile in detail as to how many members are there in your family, no of family members dependent on you, what are your current obligations, etc.

After doing the personal discussion and after having gone through your documents, if they are ready to sanction your loan, they will issue a sanction letter to you. 

The sanction letter may have certain conditions which you need to fulfill before you get the disbursement cheque of your loan. 

You are advised to go through entire sanction letter thoroughly so that you know exactly what are the documents to be submitted and formalities to be completed by you before you get the cheque of the loan amount.

Post this you need to submit all the required property documents to the bank. Generally following property documents are supposed to be submitted-

In case of purchase of the property from the builder-
1. Original Registered Sale agreement between the Borrower and the Builder along with original stamp duty and registration receipt
2. Original NOC from the Builder. The NOC should be in the bank's format
3. Original stamped receipts of payment of own contribution of the borrower  (The receipt will be issued by the Builder)

In case of purchase of a Resale Property-
1. Original Registered Sale agreement between the Borrower and the Seller along with original stamp duty and registration receipt
2. Original NOC from the Society The NOC should be in bank's format
3. Original stamped receipts of payment of own contribution of the borrower  (The receipt will be issued by the seller)
4. Original Share Certificate of the property

They will check whether your property has a clear & marketable title and will also do valuation of the property.

After valuation and title check, you need to sign loan agreement & other disbursement documents and then take the cheque of disbursement. If the property is underconstruction, the disbursement (payment) of the home loan will be done in parts as per progress of construction work of the building.

This is broadly how you can get a home loan. This process flow may differ slightly based on the bank where you apply and the type of property you are buying.

Thursday, 23 August 2018

Words of Wisdom from Warren Buffet

Warren Buffett is an American billionaire and arguably the world's greatest stock market investor.

Some of his famous quotes which are worth reading-

"Unless you can watch your stock holding decline by 50% without becoming panic striken, you should not be in the stock market."

 "Never invest in a business you can't understand."

"A great investment opportunity occurs when a marvelous business encounters one-time huge, but solvable problem."

"The investor of today does not profit from yesterday's growth."

"Rule No. 1: Never lose money; Rule No. 2: don't forget rule No. 1."

"It's nice to have a lot of money. but you know, you don't want to keep it around forever. I prefer buying things. Otherwise, it's a little like saving sex for your old age.‘

"Price is what you pay. value is what you get."

"I try to buy stock in businesses that are so wonderful that an Idiot can run them. Because sooner or later, one will."

"Whether we are talking about socks or stocks, I like buying quality merchandise when It is marked down."

"In the business world, the rearview mirror is always clearer than the windshield."

Sunday, 6 May 2018

What is a Pre-Approved Home Loan? | What does pre-approved home loan mean?

Usually while buying a residential property, we negotiate the price of the property after finalising the property. After this, we approach a bank for a home loan. However, this may not be the best approach. You may be better off if you start the process by getting your home loan pre-approved.

Pre-Approved Home loan and its advantages
Pre-Approved Mortgage

What is a Pre-Approved Home Loan?

Pre-Approved Home Loan (also called as an in-principle approval/sanction of a home loan) is a home loan sanctioned by the bank to its customer/borrower before the borrower has finalized a residential property to buy. The loan amount is decided purely on the basis of borrower's income documents, creditworthiness, repayment capacity and financial position.

The value of the property is not taken into consideration at all (as the same would have not been finalized by the borrower at the time of application for the home loan). The approval is valid for a limited time period (usually 3 to 6 months). The borrower should identify a property within this limited time period. If he is unable to do so, the validity of the sanction letter will lapse and he will be required to submit his latest financial documents.

The disbursement will be done by the bank only if the property has a clear title and is acceptable to the bank as security (as per their lending norms). For example, if the property finalized by the customer is found to be structurally weak, the bank may not go ahead with the disbursement of the loan.

Also one must keep in mind that the terms of the loan (interest rate, EMI, and tenure) indicated in the sanction letter may change later. For example, if the rate of interest increases after the bank has given an in-principal sanction letter, the borrower will not get the loan at the rate of interest mentioned in the sanction letter (as always rate of interest applicable to the loan is the rate of interest prevailing at the time of disbursement of the loan).

What are the benefits of getting a home loan pre-approved?

1. Once the borrower knows how much loan he is eligible for (based on his income), he will be very clear about his budget. Hence he can focus better on the property search without worrying too much about how he will be able to manage his finances for buying the property. He will not miss out on a good property deal as he will be able to make quick decisions (since he would now have a better picture of his budget and finances).

2. The loan processing will take much less time after the property has been finalized by the borrower (as a lot of loan formalities would have been completed at the time of pre-approval/in-principle sanction of the loan). This will also enable him to make immediate payment to the seller of the property and quickly take possession of the property (if the property is ready).

3. The borrower will be in a position to negotiate better with sellers. The pre-approval of home loan would increase his bargaining power as he would now have a sanction letter to show to the seller (so that the seller becomes confident about swift payment of the price of the property). The seller may agree to sell the property at a slightly lower rate in such a scenario.

4. Assistance in property search - Sometimes the banks also share with the customers (whose loans have been sanctioned in principle) the list of projects approved by them This would assist the borrower to try to find a deal without the assistance of a broker. Also, if he finalizes a property from that list he can be sure that the property falls within the lending norms of the bank and that title of the property is clear.

Read Further -

Factors that affect home loan eligibility

Reasons for rejection of a home loan

Break up of EMI into interest and principle