Friday, 20 September 2019

Difference between Balance of Trade and Balance of Payment - Class 12

Difference between Balance of Trade and Balance of Payment is as follows-

(1) Balance of Trade records those economic transactions with the rest of the world which are related to trade of goods only. Transactions pertaining to services are not included in Balance of Trade.

Balance of Payment records all economic transactions with the rest of the world.

(2) Balance of Trade account does not record transactions of capital nature. Balance of Payment account records transactions of capital nature also.

(3) Balance of trade is a narrow concept as it is just a component of the balance of payment. Balance of trade is a part of the balance of payment. Balance of payment is a wider concept. It includes Balance of Trade. Balance of Trade is a part of the balance of payments.

(4) Balance of trade is only a partial record and hence it is not a true indicator of economic relations with other countries. Balance of payment is a complete record of all economic transactions with other countries and hence it provides a true picture of economic relations with other countries. In the balance of payment, we also record service transactions and not only the transactions of goods. For example, borrowings from abroad will not be a part of the balance of trade but it will be a part of the balance of payment as this is a capital transaction and capital transactions are not included in the balance of trade, but they are included in the balance of payments

Wednesday, 18 September 2019

How to be successful in blogging?

Blogging is hot these days. Its the "in thing". It gives you the ease of earning money from the comforts of your home. All you need  to have is a smart phone with a internet connection and you are good to go.

How to become a successful blogger?

But are all bloggers successful and earning tons of money working from the comforts of their home? The answer clearly is No. Grass always looks greener on the other side.

There are a few things you need to keep in mind if you want to be successful at blogging. Following are some of the tips that can help you become a successful blogger-

1. Don't run behind money and let it run behind you -

First and foremost, you should not run after money (certainly not at least at the beginning of your blogging career) and be as much patient as you can. Once things start rolling, the money will follow. Patience is very important. Make it your best friend on your blogging journey. Keep in mind, you can't get rich overnight. Perseverance is the key.

2. Write for readers and not for google.

Your first target should be to learn to write good blogs which can help people find a solution to their problems or at least you need to make sure their reading of your blogs give them a pleasing time. Don't directly jump on SEO bandwagon. SEO can help but not without great content. Content is the king. Write your heart out.

3. Hard Work: If you want to do blogging for a long time, then you need to work hard. You will not get success in blogging soon.  If you work hard, then too you will take atleast a year to find a bit of success. If you work hard, you will get your first income in 3 to 6 months. So you need to keep writing. Don't lose hope or interest. There are no free lunches.

4. Pick up the right Niche: Nobody goes to a semi-qualified doctor. Pick up a niche where you have a certain degree of expertise. Pick up a niche which you find interesting to write on. It is important that even you should enjoy writing. Else you are bound to give up too early. Remember, Rome was not built in a day.

5. Don't overspend early on: Start blogging on free platforms like blogger. You can later switch to Wordpress anytime.

6. Copy-Paste is strict No-No: It is most tempting thing to do but search engines don't like it. Be original, be yourself. Have your own originial ideas and content.

I hope these suggestions would be of help for beginners in the field of blogging.

Happy Blogging

Saturday, 14 September 2019

Training of employees - Benefits to the organisation or employees | Class 12 | Business Studies

Training of employees

Benefits to the organisation or employees-

(i) Training enhances productivity of the employee.

(ii) It improves skills and knowledge of the employee.

(iii) Employee becomes more efficient in the handling of machinery and equipments.

(iv) It leads to improvement in overall performance of the employee.

(v) It increases the morale of the employee and reduces absenteeism.

(vi) It leads to reduction in wastage of effort and money

(vii) It equips future managers

(viii) It helps in obtaining effective response to fast changing environment.

Advantages and Disadvantages of formal communication - Class 12, Business Studies

Advantages of Formal Communication:

1. The formal communication is very systematic. It ensures orderly flow of information.

2. The source of information can easily be traced.

3. In formal communication fixing responsibilities of different employees is easy since there is proof for the information.

4. Formal communication makes it easy to exercise control over the work performance of different employees.


1. The information is passed on slowly as generally scalar chain is followed while passing of information.

2. In formal communication the information is conveyed in an impersonal manner.

3. The information may not be transmitted accurately to avoid the unfavourable effect of communication.

Friday, 13 September 2019

Economic and Non-Economic Activities | ICSE | Class 9 | Economics

Economic Activities refer to all those activities which are concerned with money or wealth.

The main purpose of such activities is to satisfy human wants. For example, a person running a shop or a person doing a job. Both these activities are economic activities as both these activities are carried out with an intention to earn some money. Also, both these activities are carried out with an intention of satisfying human wants like Food, Clothing, Shelter, etc. These wants are satisfied by money earnt by carrying out the above-mentioned economic activities.

Any economic activity has to be carried out within rules and regulations of the society.

Elements of economic activities-

1. Economic activities are human activities which are concerned with money or wealth.

2. The main objective of any economic activity is to satisfy human wants.

3. It is an activity which is concerned with the production, consumption, distribution and exchange of economic goods. Economic goods are goods which possess utility and are scarce as in comparison to their demand

Non-Economic Activities- These are the activities which are not concerned with money or wealth.

Non-Economic activities can be-

1. Social Activities like attending a marriage

2. Political Activities like activities performed by political parties like BJP, Congress, etc.

3. Charitable Activities like helping poor

4. Religious Activities like worshipping

5. Recreational Activities like playing cricket

6. Parental Activities like activities carried out by parents for their children out of love and affection.

If any of the above activities involve money or wealth, such an activity will become an economic activity. For example, footballer playing football just for recreation is a non-economic activity. But when he plays a football match for money, it is an economic activity.

In economics, we are concerned only with economic activities.

Sectors of an economy - ICSE, Class 9, Economics

An economy can be broadly classified into the following three sectors-

1. Production Sector- Production Sector refers to the sector where goods and services are produced. This sector produces goods and services with the help of various factors of production namely Land, Labour, Capital and Enterprise.

2. Consumption Sector- This sector is also referred to as the household sector. This sector provides all the factors of production to the production sector and in return gets paid for these services (in the form of rent, wages, interest and profit). This income is then spent by the people of this sector on buying goods and services produced by the production sector.

3. Government Sector- Government these days plays a very important role in the economy. It acts both as a producer as well as consumer in the economy. As a producer, it hires various factors of production for production of goods and services like health, education, defence etc which are consumed by the entire society. As a consumer, it purchases various goods and services from the production sector which are consumed collectively by the entire society.

Thursday, 29 August 2019

Partnership-Meaning, Features, Merits and Demerits | HSC | Class 12

Partnership - Meaning, Features, Merits and Demerits, Class 11

What is Partnership? What are its Characteristics, Advantages and Disadvantages?

Definition of Partnership - "Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all".

A partnership is a form of business organization which has two or more owners. So for forming a partnership firm, you need at least two people. Owners of a partnership firm are called partners.

What are the features of a partnership firm?

1. Agreement - Without an agreement, a partnership cannot be formed. However, it is not mandatory to have a written agreement. The agreement can be oral as well. To avoid disputes in future, it is better to have a written agreement. The written agreement is also called as a Partnership Deed. So partnership deed is a written agreement between the partners

2. Registration - The registration of a partnership firm is not mandatory except in the state of Maharashtra. Even if registration is not mandatory, it is advisable to register the partnership deed with the office of the registrar (in case the partners have prepared a partnership deed). This helps in case of any disputes between the partners in future.

3. Lawful Business - Needless to say a partnership firm cannot conduct a business which is not permitted by law.

4. Membership - Minimum two persons are required to form a partnership firm as I have already stated earlier. The maximum number of owners or members cannot be more than 20. In case the partnership is formed to run a banking business, the maximum number of partners can be 10 only.

5. Sharing of profits and losses - Partnership involves sharing of profits or losses arising out of partnership business. The profit-sharing ratio is mentioned in the partnership deed. If it is not mentioned in the partnership deed, it is assumed to be equal. Again, if partners have not prepared a partnership deed and if there is a dispute with respect to profit sharing ratio, profit sharing ratio will be assumed to be equal by law

6. Unlimited Liabilities - All partners have unlimited liabilities except the minor partner. In case the assets of the business are not sufficient to pay off the creditors of the business, personal assets of the partners will be used to pay off the creditors of the partnership firm.

7. Management - The management of a partnership firm can be done by all or any one of the partners or a few partners together. It depends upon the agreement between the partners.

8. Dissolution- Dissolution means the closure of the partnership firm. Any partner can initiate dissolution. In case of death or retirement or insolvency of a partner, the partnership can be dissolved.

9. Relationship between the partners - All partners manage the business jointly or maybe only one partner manages the business or maybe a few partners manage the business together. Thus, every partner acts as a principal as well as the agent. Let's assume that there is only one partner who is managing the business. In such a case that partner is working as an owner or the principal. At the same time, he is working on behalf of other partners which means he is also working as an agent for other partners.

Also Read - Sole Proprietorship

What are the merits of a partnership firm? 1. More Manpower - In a partnership firm, there are more than one owners. Due to the presence of more than one owner, the partnership firm has the advantage of having more manpower as compared to sole proprietorship firms.

2. More Financial Resources - Since there are more than one owner in a partnership firm, the partnership firm has access to more financial resources. A partnership firm can raise more capital as there are more than one owners. 3. Ease of formation - The formation of a partnership firm is easy because registration is not compulsory. Again it is not mandatory for partners to register their partnership agreement or partnership deed. 4. Easy Dissolution - The dissolution or the closure of a partnership firm is not very difficult. There are not many legal formalities involved in closing the business and hence it is possible to close down the business very smoothly.

5. Division of risk- In case of partnership firm, there is a division of risk. In case of sole proprietorship concern, there is only one owner and hence there is no division of risk. However, in case of partnership firm, there are two or more than two owners and hence there is a division of risk. The risk is not borne by a single person. The risk of loss gets divided among all the partners. 6. Secrecy - There is more secrecy in the partnership firm as compared to some other bigger forms of business organisations like a private limited company or a public limited company. This is because the partners do not have to publish the partnership firm's financial statements anywhere. In case of some other forms of business organisations like a public limited company, you need to publish your financial statements to the public on a regular basis. 7. Better Decision Making - In case of partnership firm, the decision is taken by the owners jointly. Since the decision is taken jointly, it results in better decision making. 8. Flexibility - In case of partnership firm, there is more flexibility in the operation of the business as compared to some other bigger forms of business organisations like a public limited company. In case of a public limited company in certain decision making, you have to involve shareholders. So you need to call shareholders meeting before making the decision which is not the case in case of the partnership firm. So there is a lot of flexibility in decision making as well as the operation of the business.

What are the demerits of Partnership Firm?
1. Unlimited Liabilities: In case of partnership firm, the owners have unlimited liability which means that in case the business assets are not sufficient to pay off the business liabilities, then the property of the owners can be used to pay off the external liabilities of the business. 2. No Separate Legal Status - The partnership firm does not have any separate legal status. In the eyes of the law, the partnership firm and owners are one an and the same. That is the reason why owners have unlimited liabilities. So the law sees a partnership firm and the owners as one and the same entity. In case of a private limited company or a public limited company, the business has its own separate legal identity, which means that in eyes of law the business and the owners are two separate entities, which means that the liability of the owners is limited its not unlimited since the business is considered to be a separate legal entity from the owners. 3. Limited Resources - Though the partnership firm has more resources financial as well as human as compared to sole proprietorship firm, however when you compare it with other bigger forms of business organizations like public limited or a private limited company the resources of a partnership firm are less. So this form of business organization has limited resources when you compare it with other bigger forms of business organizations like a public limited company or a private limited company.

4. Disputes among the Partners - Quite often in this form of business organization there is a difference of opinions among the partners. This can damage the reputation of the firm in the market. Sometimes it may also result in conflicts and eventually the dissolution of the business. 5. No perpetual existence- Partnership firm does not enjoy a perpetual existence or a permanent existence because it does not have any separate legal identity in the eyes of law. Law considers partnership business and the owners one and the same. As a result, death or insolvency of partners can lead to the closure of the partnership firm. 6. Risk of Implied Authority - Every partner in the partnership firm has an authority to enter into contracts or agreements on behalf of the firm. So one partner can enter into agreement or contract with anyone on behalf of all the other partners. A wrong decision by anyone partner can result in heavy losses of the business and since the liability of all the partners is unlimited, all the partners have to bear the loss. So sometimes all the partners or all the owners of partnership firm have to bear the loss because of a wrong decision of anyone partner.