Business, Commerce

WAREHOUSING: Meaning, Advantages, Functions and Types of Warehousing

 In this blog, we will understand the below following core concepts of Warehousing :    Meaning and Importance of Warehousing Function of Warehousing Types of Warehousing Qualities of an Ideal Warehouse INTRODUCTION: The important function of storing products is properly performed through warehousing. The place where goods are stored is known as a warehouse. The term ‘ware’ means ‘article, or ‘merchandise’ and collectively warehouse…

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Business, Commerce, Economics

Advantages of Transportation

INTRODUCTION:  Transport refers to physical means by which human beings and commodities are transferred from one place to another. It removes the hindrances in the movement of goods and persons. Agricultural development, industrial development social welfare and political integration of a country largely depended on the means of transportation. Transport distributes the goods, which are centrally produced to various parts…

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Banking, Business, Commerce

WHAT IS PROMISSORY NOTE?

Promissory note is a credit instrument in which the debtor or the buyer promises to pay a certain amount of money to the creditor or seller on demand or at a fixed future time. DEFINITIONS: 1.  “A promissory note is a negotiable instrument in writing containing an unconditional declaration signed by the maker to pay a certain sum of money…

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PROCESS OF LETTER OF CREDIT
Banking, Business, Commerce

PROCESS OF LETTER OF CREDIT

What is Letter of Credit? 1. The letter of credit is a written instrument issued by the buyer’s bank authorizing the seller to draw in accordance with certain terms and conditions. (Frank Henious) 2. The letter of credit is a commitment on the part of the buyer’s bank to pay or accept draft drawn upon provided such drafts do not…

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EXCHANGE CONTROL
Banking, Business, Commerce, Economics

EXCHANGE CONTROL

INTRODUCTION: The government of any country, for achieving its specific economic objectives, does not permit the free movement of foreign exchange and the conversion of one country’s currency into the currency of another country. Hence, the government makes some rules and regulations to check the free movement and conversion of home/foreign currencies which are called “Exchange Control” policies. After the…

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Bills of Exchange
Banking, Business, Commerce

BILLS OF EXCHANGE

In this blog, we will understand the below following core concepts of bills of exchange: Definition & Parties of Bills of Exchange Characteristics of Bills of Exchange Types of Bills o f Exchange Advantages of Bills of exchange MEANING: The document used by bankers, traders, industrialists and other people for the settlement of business transactions is called bills of exchange. It is an…

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Difference Between Pledge, Hypothecation & Mortgage
Banking, Business, Commerce

Difference Between Pledge, Hypothecation and Mortgage

Pledge: Pledge is an actual delivery of rights (documents) as well as the possession of the goods/property to the. bank against certain loan. The ownership of the property remains with the pledger (customer). In case of non-payment the banker serves a notice for the fact and afterwards can sell the goods. Hypothecation: In case of hypothecation goods are made available…

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Primary Industry and Secondary Industry
Business, Commerce

Primary Industry and Secondary Industry

Industry is that part of business which connected with the production of goods and services. It is a place where the raw material is converted into finished or semi-finished goods which have the ability to satisfy human needs or can be used in another industry as basic material. Owner of the industry who is engaged in the work of production…

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Difference Between Wholesale Trade and Retail Trade?
Business, Commerce, Differences

Difference Between Wholesale Trade and Retail Trade?

Wholesale Trade: Wholesale trade means buying and selling of goods in large quantities. Wholesale buy goods from producers or distributors in order to sell them in small quantities to the shopkeepers (retailers). Wholesaler has specialized dealings in particular items. He purchases in bulk from producer or industrialists and sell them in small quantity to retailers. Retail Trade: Retailing means selling…

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Trade and Types of Trade
Business, Commerce

Trade and Types of Trade

Introduction: The literary meaning of trade is exchanging of goods. It may be defined as the exchange of commodities between individual or groups either through barter system or through any medium such as money. It includes all the selling and buying activities either within a country or across the boundaries of the country. In actual practice, trade is the whole…

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