Normally, it is considered that business administration and the economic theories are of different concerns but it is wrong perception.For a successful business administrator not only the business laws but the concept of economics especially the managerial economics also matteres.

Whether the decision is about production and distribution, sale and purchase, goods and services, costs and prices,or profits and loses the owner must have the knowledge of basic economic theories.

For a profitable business not only the knowledge of economic theories is important but the manager must also be aware of the applicability of the theories to the real life. Basic managerial concepts are the managing tools in the business world.
…read the rest of this entry»

The term revenue means the income that a company receives from its normal business activities, usually from the sale of goods and services to the customers. Income which a company earns through dividends, interest or royalties amount paid by other companies is also called as revenue. Revenue may refer to the income earned through a business in general, or it may refer to an amount received during a period of time. Profit or net income is generally calculated by subtracting total expenses from total revenue with in a given period. Revenue is also known as “REVs“.In the case of a non-profit organization, annual revenue is termed as gross receipts.

The sources of revenue for these non-profit organizations are as follows:

• Aid from government organizations
• Donations from individuals and corporations
• Income from activities related to the organization’s mission
• Income from fund generating activities
• Financial investments such as stocks and shares of the companies
• Membership dues

…read the rest of this entry»

Because of an industry-wide slowdown in sales, the French carmaker Renault announces 6,000 job cuts.

According to Renault, about 4,900 jobs would be cut in France while the number would go 1,100 in other European countries.

However, a severe reaction has been shown by the French unions to the news and CGT union has called for one-day strike on Thursday.

The CGT union is asking President Nicolas Sarkozy to arbitrate the issue. Almost 15% of Renault’s shares are owned by the French government. …read the rest of this entry»