Conceptual Framework of Business Management

Since the evolution of this world, Trade, business, Commerce, Export, Import, retailing, gambling, buying and selling had been the leading entrepreneurs in all the development of the planet. Same as the management has become a big question mark before us. Many scientists like economists, sociologists, public administration experts, public policy analysts, business analysts, human resource developmental experts, philosophers, astrologists, political panels and religious practioners have defined the business management in their own observation. Where the majority of them characteristically elucidate the business management as the symbolic value of planning, organization, leadership, control, capital, financial, machinery and technologicalism, human being assets as well as the nature’s resources.

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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.

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