1.
Business administration
–
Business administration is management of a business. It includes all aspects of overseeing and supervising business operations, in general, administration refers to the broader management function, including the associated finance, personnel and MIS services. Alternatively, administration can refer to the bureaucratic or operational performance of routine tasks, usually internally oriented. Administrators, broadly speaking, engage in a set of functions to meet the organizations goals. These functions of the administrator were described by Henri Fayol as the five elements of administration, sometimes creating output, which includes all of the processes that create the product that the business sells, is added as a sixth element. A business administrator oversees a business and its operations, the job is to ensure that the business meets its goals and is properly organized and managed. When organizational changes are necessary, a person in this usually leads the way as well. In some cases, the person who starts or owns the business serves as its administrator, when a person has the title of business administrator, they are essentially the manager of the company and its other managers. The person oversees those in positions to ensure that they follow company policies. Additionally, they interact with people outside the company, such as business partners and vendors. The Bachelor of Business Administration is a degree in commerce. The degree is designed to give a broad knowledge of the aspects of a company and their interconnection. The degree also develops the students practical, managerial and communication skills, many programs incorporate training and practical experience, in the form of case projects, presentations, internships, industrial visits, and interaction with experts from industry. The Master of Business Administration is a degree in business administration. The MBA degree originated in the United States in the early 20th century when the country industrialized, most programs also include elective courses. The MBA is a degree and a professional degree. Accreditation bodies specifically for MBA programs ensure consistency and quality of education, Business schools in many countries offer programs tailored to full-time, part-time, executive, and distance learning students, many with concentrations. PhD in management is the highest academic degree awarded in the study of management science, the degree was designed for those seeking academic research and teaching careers as faculty or professors in the study of management at business schools worldwide
2.
Management
–
Management is the administration of an organization, whether it be a business, a not-for-profit organization, or government body. The term management may also refer to the people who manage an organization, management is also an academic discipline, a social science whose objective is to study social organization and organizational leadership. Individuals who aim at becoming management researchers or professors may complete the Doctor of Business Administration or the PhD in business administration or management, in larger organizations, there are generally three levels of managers, which are typically organized in a hierarchical, pyramid structure. Senior managers provide direction to the managers who report to them. Middle managers, examples of which would include branch managers, regional managers and section managers, middle managers communicate the strategic goals of senior management to the front-line managers. Lower managers, such as supervisors and front-line team leaders, oversee the work of regular employees, in smaller organizations, the roles of managers have much wider scopes. A manager can perform several roles or even all of the commonly observed in a large organization. There are many smaller organizations than larger ones. Views on the definition and scope of management include, According to Henri Fayol, to manage is to forecast and to plan, to organise, to command, to co-ordinate, fredmund Malik defines it as the transformation of resources into utility. Management included as one of the factors of production - along with machines, materials, peter Drucker saw the basic task of management as twofold, marketing and innovation. Nevertheless, innovation is also linked to marketing, peter Drucker identifies marketing as a key essence for business success, but management and marketing are generally understood as two different branches of business administration knowledge. Management involves identifying the mission, objective, procedures, rules and this implies effective communication, an enterprise environment implies human motivation and implies some sort of successful progress or system outcome. As such, management is not the manipulation of a mechanism, not the herding of animals, management does not need to be seen from enterprise point of view alone, because management is an essential function to improve ones life and relationships. Management is therefore everywhere and it has a range of application. Based on this, management must have humans, communication, plans, measurements, motivational psychological tools, goals, and economic measures may or may not be necessary components for there to be management. At first, one views management functionally, such as measuring quantity, adjusting plans and this applies even in situations where planning does not take place. Critics, however, find this definition useful but far too narrow, one habit of thought regards management as equivalent to business administration and thus excludes management in places outside commerce, as for example in charities and in the public sector. More broadly, every organization must manage its work, people, processes, technology, nonetheless, many people refer to university departments that teach management as business schools
3.
Business
–
A business is an organizational entity involved in the provision of goods and services to consumers. Businesses may also be social non-profit enterprises or state-owned public enterprises operated by governments with specific social, a business owned by multiple private individuals may form as an incorporated company or jointly organise as a partnership. Countries have different laws that may ascribe different rights to the business entities. The word business can refer to an organization or to an entire market sector or to the sum of all economic activity. Compound forms such as agribusiness represent subsets of the broader meaning. Businesses aim to maximize sales to have their income exceed their expenditures, resulting in a profit, the owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, partnership, A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business, the three most prevalent types of for-profit partnerships are, general partnerships, limited partnerships, and limited liability partnerships. Corporation, The owners of a corporation have limited liability and the business has a legal personality from its owners. Corporations can be either government-owned or privately owned and they can organize either for profit or as nonprofit organizations. A privately owned, for-profit corporation is owned by its shareholders, a privately owned, for-profit corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange. Cooperative, Often referred to as a co-op, a cooperative is a limited-liability business that can organize as for-profit or not-for-profit, a cooperative differs from a corporation in that it has members, not shareholders, and they share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives, cooperatives are fundamental to the ideology of economic democracy. In contrast, unincorporated businesses or persons working on their own are not as protected. Franchises, A franchise is a system in which entrepreneurs purchase the rights to open, franchising in the United States is widespread and is a major economic powerhouse. One out of retail businesses in the United States are franchised and 8 million people are employed in a franchised business. Real estate businesses sell, invest, construct and develop properties – including land, residential homes, retailers, wholesalers, and distributors act as middlemen and get goods produced by manufacturers to the intended consumers, they make their profits by marking up their prices. Most stores and catalog companies are distributors or retailers, transportation businesses such as railways, airlines, shipping companies that deliver goods and individuals to their destinations for a fee
4.
Accounting
–
Accounting or accountancy is the measurement, processing and communication of financial information about economic entities such as businesses and corporations. The modern field was established by the Italian mathematician Luca Pacioli in 1494, practitioners of accounting are known as accountants. The terms accounting and financial reporting are often used as synonyms, Accounting can be divided into several fields including financial accounting, management accounting, external auditing, and tax accounting. Accounting information systems are designed to support accounting functions and related activities, Accounting is facilitated by accounting organizations such as standard-setters, accounting firms and professional bodies. Financial statements are audited by accounting firms, and are prepared in accordance with generally accepted accounting principles. GAAP is set by various standard-setting organizations such as the Financial Accounting Standards Board in the United States, as of 2012, all major economies have plans to converge towards or adopt the International Financial Reporting Standards. The history of accounting is thousands of old and can be traced to ancient civilizations. By the time of the Emperor Augustus, the Roman government had access to detailed financial information, double-entry bookkeeping developed in medieval Europe, and accounting split into financial accounting and management accounting with the development of joint-stock companies. The first work on a double-entry bookkeeping system was published in Italy, both the words accounting and accountancy were in use in Great Britain by the mid-1800s, and are derived from the words accompting and accountantship used in the 18th century. In Middle English the verb to account had the form accounten, which was derived from the Old French word aconter, which is in turn related to the Vulgar Latin word computare, meaning to reckon. The base of computare is putare, which meant to prune, to purify, to correct an account, hence, to count or calculate. The word accountant is derived from the French word compter, which is derived from the Italian. Accountancy refers to the occupation or profession of an accountant, particularly in British English, Accounting has several subfields or subject areas, including financial accounting, management accounting, auditing, taxation and accounting information systems. Financial accounting focuses on the reporting of a financial information to external users of the information, such as investors. It calculates and records business transactions and prepares financial statements for the users in accordance with generally accepted accounting principles. GAAP, in turn, arises from the agreement between accounting theory and practice, and change over time to meet the needs of decision-makers. This branch of accounting is also studied as part of the exams for qualifying as an actuary. It is interesting to note that two professionals, accountants and actuaries, have created a culture of being archrivals
5.
Management accounting
–
One simple definition of management accounting is the provision of financial and non-financial decision-making information to managers. Performance management—developing the practice of business decision-making and managing the performance of the organization, risk management—contributing to frameworks and practices for identifying, measuring, managing and reporting risks to the achievement of the objectives of the organization. The Institute of Certified Management Accountants, Management accountants therefore are seen as the value-creators amongst the accountants. They are more concerned with looking and taking decisions that will affect the future of the organization, than in the historical recording. In 2014 CIMA created the Global Management Accounting Principles, the result of research from across 20 countries in five continents, the principles aim to guide best practice in the discipline. Focus, Financial accounting focuses on the company as a whole, Management accounting provides detailed and disagregated information about products, individual activities, divisions, plants, operations and tasks. Traditional approaches limit themselves by defining cost behavior only in terms of production or sales volume, in 1993, the Accounting Education Change Commission Statement Number 4 calls for faculty members to expand their knowledge about the actual practice of accounting in the workplace. Variance analysis is an approach to the comparison of the actual and budgeted costs of the raw materials. Other approach that can be viewed as innovative to the U. S. is the German approach, one of the more innovative accounting practices available today is resource consumption accounting. Consistent with other roles in corporations, management accountants have a dual reporting relationship. A function of management accounting in such organizations is to work closely with the IT department to provide IT cost transparency, given the above, one view of the progression of the accounting and finance career path is that financial accounting is a stepping stone to management accounting. Consistent with the notion of creation, management accountants help drive the success of the business while strict financial accounting is more of a compliance. Activity-based costing was first clearly defined in 1987 by Robert S. Kaplan and W. Bruns as a chapter in their book Accounting and Management, A Field Study Perspective. For example, increased automation has reduced labor, which is a direct cost, but has increased depreciation, the term Grenzplankostenrechnung, often referred to as GPK, has best been translated as either marginal planned cost accounting or flexible analytic cost planning and accounting. GPK is published in cost accounting textbooks, notably Flexible Plankostenrechnung und Deckungsbeitragsrechnung, in the mid- to late-1990s several books were written about accounting in the lean enterprise. The term lean accounting was coined during that period and these books contest that traditional accounting methods are better suited for mass production and do not support or measure good business practices in just-in-time manufacturing and services. The movement reached a point during the 2005 Lean Accounting Summit in Dearborn, Michigan. 320 individuals attended and discussed the advantages of a new approach to accounting in the lean enterprise,520 individuals attended the 2nd annual conference in 2006 and it has varied between 250 and 600 attendees since that time
6.
Financial accounting
–
Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions pertaining to a business. This involves the preparation of financial statements available for public consumption, stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people interested in receiving such information for decision making purposes. Financial accountancy is governed by local and international accounting standards. Generally Accepted Accounting Principles is the framework of guidelines for financial accounting used in any given jurisdiction. It includes the standards, conventions and rules that follow in recording and summarizing. IFRS are issued by the International Accounting Standards Board, with IFRS becoming more widespread on the international scene, consistency in financial reporting has become more prevalent between global organizations. Financial accounting and financial reporting are often used as synonyms, according to the European Accounting Association, Capital maintenance is a competing objective of financial reporting. When producing financial statements, they must comply to the following, Relevance and it must be possible for accounting information to influence decisions. Unless this characteristic is present, there is no point in cluttering statements, materiality, information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. Reliability, accounting must be free from significant error or bias and it should be easily relied upon by managers. Often information that is highly relevant isn’t very reliable, and vice versa, understandability, accounting reports should be expressed as clearly as possible and should be understood by those to whom the information is relevant. Comparability can be ensured by applying the same accounting policies over time, the statement of cash flows considers the inputs and outputs in concrete cash within a stated period. During that same month, Ellen borrowed $20 from Tom, at the end of the month, Ellen bought a pair of shoes for $7. Theyd originally bought the tables for $25 each, and sold them at a price of $50 per table, the first table was paid out in cash however the second one was bought in credit terms. WikiTables cash flow statement for the month of June looks like this, Cash inflow and they didnt receive cash for the second table. Cash outflow, $50 - How much theyd originally bought the 2 tables for, opening balance, $0 Closing balance, $50 – $25 + $0 = $25–25=$0 - Indeed, the cash flow for the month of June for WikiTables amounts to $0 and not $50. Important, the cash flow statement only considers the exchange of actual cash, in the case of service organizations, they are called as profit & loss a/c as income statement. The right and left sides are equal in dollar amount
7.
Financial audit
–
A financial audit is conducted to provide an opinion whether financial statements are stated in accordance with specified criteria. In accordance with the US GAAP, auditors must release an opinion of the financial statements in the auditors report. Auditors can release three types of other than an unqualified/unmodified opinion. The unqualified auditors opinion is the opinion that the statements are presented fairly. A qualified opinion can also be issued for a limitation that is of limited significance. Further the auditor can instead issue a disclaimer, because there is insufficient, in a disclaimer the auditor explains the reasons for withholding an opinion and explicitly indicates that no opinion is expressed. Finally, an audit opinion is issued when the financial statements do not present fairly due to departure from US GAAP. Financial audits are performed by firms of practicing accountants who are experts in financial reporting. The financial audit is one of many assurance functions provided by accounting firms, many organizations separately employ or hire internal auditors, who do not attest to financial reports but focus mainly on the internal controls of the organization. External auditors may choose to place limited reliance on the work of internal auditors, Auditing promotes transparency and accuracy in the financial disclosures made by an organization, therefore would likely reduce such corporations concealmeant of unscrupulous dealings. Internationally, the International Standards on Auditing issued by the International Auditing, almost all jurisdictions require auditors to follow the ISA or a local variation of the ISA. A misstatement is defined in ISA450 as an error, omitted disclosure or inappropriate accounting policy, material is an error or omission that would affect the users decision. Audits exist because they add value through easing the cost of asymmetry and reducing information risk. They handle the vast majority of audits for publicly traded companies as well as private companies. It is reported that the Big Four audit 99% of the companies in the FTSE100, and 96% of the companies in the FTSE250 Index, the Big Four firms are shown below, with their latest publicly available data. None of the Big Four firms is a firm, rather. Each is a network of firms, owned and managed independently, each network has established an entity to co-ordinate the activities of the network. In one case, the entity is Swiss, and in three cases the co-ordinating entity is a UK limited company
8.
Legal personality
–
To have legal personality means to be capable of holding legal rights and obligations within a certain legal system, such as entering into contracts, suing, and being sued. Legal personality is a prerequisite to legal capacity, the ability of any person to amend rights. In international law, consequently, legal personality is a prerequisite for an organization to be able to sign international treaties in its own name. A holder of legal personality is called as a person, Persons are of two kinds, natural persons and juridical persons – entities such as corporations, which are treated in law as if they are persons. While human beings acquire legal personhood when they are born, juridical persons do so when they are incorporated in accordance with law, artificial personality, juridical personality, or juristic personality is the characteristic of a non-living entity regarded by law to have the status of personhood. A juridical or artificial person has a name and has certain rights, protections, privileges, responsibilities. The concept of a person is a fundamental legal fiction. It is pertinent to the philosophy of law, as it is essential to laws affecting a corporation, juridical personality allows one or more natural persons to act as a single entity for legal purposes. In many jurisdictions, artificial personality allows that entity to be considered under law separately from its individual members and they may sue and be sued, enter contracts, incur debt, and own property. Entities with legal personality may also be subjected to legal obligations. An entity with legal personality may shield its members from personal liability, in some common law jurisdictions a distinction is drawn between corporation aggregate and a corporation sole. Historically most corporations sole were ecclesiastical in nature, but a number of public offices are now formed as corporations sole. The concept of personality is not absolute. The concept of a person is now central to Western law in both common-law and civil-law countries, but it is also found in virtually every legal system. Examples are a religious officiant in that capacity, or The Crown in the Commonwealth realms, a corporation aggregate is a corporation constituted by more than one member. Municipal corporations are creatures of statute, other organizations may be created by statute as legal persons, including European economic interest groupings. Unincorporated associations, that is aggregates of two or more persons, are treated as persons in some jurisdictions but not others. Partnerships, an aggregate of two or more persons to carry on a business in common for profit and created by agreement, traditionally, partnerships did not have continuing legal personality, but many jurisdictions now treat them as having an independent legal personality
9.
Cooperative
–
Cooperatives frequently have social goals which they aim to accomplish by investing a proportion of trading profits back into their communities. As an example of this, in 2013, retail co-operatives in the UK invested 6. 9% of their profits in the communities in which they trade as compared with 2. 4% for other rival supermarkets. The International Co-operative Alliance was the first international association formed by the cooperative movement and it includes the World Council of Credit Unions. A second organization was formed later in Germany, the International Raiffeisen Union, in the United States, the National Cooperative Business Association serves as the sectors oldest national membership association. It is dedicated to ensuring that cooperative businesses have the same opportunities as other businesses operating in the country, a U. S. National Cooperative Bank was formed in the 1970s. By 2004, a new association focused on worker co-ops was founded, since 2002 cooperatives and credit unions could be distinguished on the Internet by use of a. coop domain. Since 2014, following International Cooperative Alliances introduction of the Cooperative Marque, ICA cooperatives, cooperation dates back as far as human beings have been organizing for mutual benefit. Tribes were organized as cooperative structures, allocating jobs and resources among each other, in alpine environments, trade could only be maintained in organized cooperatives to achieve a useful condition of artificial roads such as Viamala in 1472. Pre-industrial Europe is home to the first cooperatives from an industrial context, in 1761, the Fenwick Weavers Society was formed in Fenwick, East Ayrshire, Scotland to sell discounted oatmeal to local workers. Its services expanded to include assistance with savings and loans, emigration and education, owen left New Lanark to pursue other forms of cooperative organization and develop coop ideas through writing and lecture. Cooperative communities were set up in Glasgow, Indiana and Hampshire, in 1828, William King set up a newspaper, The Cooperator, to promote Owens thinking, having already set up a cooperative store in Brighton. The Rochdale Society of Equitable Pioneers, founded in 1844, is considered the first successful cooperative enterprise, used as a model for modern coops. A group of 28 weavers and other artisans in Rochdale, England set up the society to open their own store selling food items they could not otherwise afford, within ten years there were over a thousand cooperative societies in the United Kingdom. Other events such as the founding of a society by the Tolpuddle Martyrs in 1832 were key occasions in the creation of organized labor. Cooperatives traditionally combine social benefit interests with capitalistic property-right interests, Cooperatives achieve a mix of social and capital purposes by democratically governing distribution questions by and between equal by not controlling members. Democratic oversight of decisions to equitably distribute assets and other benefits means capital ownership is arranged in a way for social benefit inside the organization, external societal benefit is also encouraged by incorporating the operating-principle of cooperation between co-operatives. In the final year of the 20th century, cooperatives banded together to establish a number of social enterprise agencies which have moved to adopt the cooperative model. In the years 1994–2009 the EU and its member nations gradually revised national accounting systems to make visible the increasing contribution of social economy organizations, the roots of the cooperative movement can be traced to multiple influences and extend worldwide
_volunteer_organisation.jpg)
