The term investment implies different meanings in business management, economics and finance but all are closely related to each other.While the bank interest rate to the consumers is defined as the current rate of return given on the savings.

Investment decision plays key role in purchasing assets for business enterprises as they tend to maximize the profits. So in business management, they have to evaluate the net benefit of making further investment and also the factors on which investment depends, the most important of which is bank interest rate.

According to the Macroeconomics concept the interest rate given by banks and investment are inversely related to each other. If banks increases the interest rates the people draw money out from the business and put it in the banks as they get high return from there thus high reward from the banks.

The business owners who made investments in their business by borrowing from the banks cut down their investment if the bank interest rate increases as they have to pay high costs of making investment which reduces their profitability.

…read the rest of this entry»

Franchising is one business alternative for any new entrepreneur.It is also a viable business strategy for an established business or company meant to generate an increased share of the market.A well-known business that has already instituted itself may decide to franchise some of its rights and business systems to a franchisee.This is done with the goal of augmenting exposure and brand recognition. Furthermore, any budding entrepreneur can benefit from choosing a franchise business, instead of having to create and develop a product and business name from scratch.

However, franchising is not for everyone and it is important to make a thorough evaluation before jumping into the franchising bandwagon.Much of the growth attained by businesses nowadays like fast food chains, bookstores and spas as examples can be rightfully attributed to the franchising strategies adopted by its owners.It cannot be denied that when a business starts to distribute franchises, publicity and identification are most likely to follow.People will start to recognize more of a particular business offering, whether it is a set of products or services.If the business is managed appropriately by the franchisee it may very well soon witness an increase in market demand.

…read the rest of this entry»

The online search giant shows 26% rise in profits despite worsening economic conditions in the country. The announcement became a cause of 7% increase in the company’s shares in after-hours trading.

During the 3Q of the 2008, Google minted $1.35bn and beaten the analysts expectations quite easily.

The company said in an announcement that its earning had strongly grown and it’s mainly due to company’s online search and advertising businesses.

There was a 31% ($5.54bn) increase in Google’s quarterly revenue that also includes commissions to associated advertisers.

…read the rest of this entry»