tag:blogger.com,1999:blog-82951043520193083492024-03-19T01:36:49.307-06:00Articles JunctionYour One Stop Information JunctionArticles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.comBlogger123125tag:blogger.com,1999:blog-8295104352019308349.post-57020689962143227942017-05-02T00:50:00.000-06:002017-05-02T00:50:38.422-06:00Meaning/ Definition/ Define/ Examples of Trading on Equity<h2><span style="color:#333;font-size:small;">Meaning of Trading on Equity</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/meaning-of-communication-definition-of.html">Meaning</a> of Trading on Equity are given in the image below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgehsApvGJaeNmIr65MGm4XxtN_lmGHXxtyXsi92Uxvvi6eoDqyZfgXezlj78hNZa5BFR8daqUheqhzsgtt8UDGfB-LIU2nC2iJtbOXAo2HUtxw7PDZVpBVuCN22DbJhTPec2FqJ0AqbE4/s1600/Meaning--of-Trading-on-Equity.png" imageanchor="1" rel="lightbox-Meaning-of-Trading-on-Equity" title="Meaning of Trading on Equity"><img class="c1" ad="true" alt="Meaning of Trading on Equity" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgehsApvGJaeNmIr65MGm4XxtN_lmGHXxtyXsi92Uxvvi6eoDqyZfgXezlj78hNZa5BFR8daqUheqhzsgtt8UDGfB-LIU2nC2iJtbOXAo2HUtxw7PDZVpBVuCN22DbJhTPec2FqJ0AqbE4/s1600/Meaning--of-Trading-on-Equity.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 238px;"/></a></p></div><p>Image credits © Manoj Patil.</p><a name='more'></a><br />
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<p>Meaning of Trading on Equity are follows.</p><br />
<p>Trading on Equity is the use of borrowed <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">funds</a> and <a href="http://articles-junction.blogspot.com/2013/10/policies-of-capital-structure-with.html">capital</a> in financing the requirements from the company. It indicates the use of debt capital in the <a href="http://articles-junction.blogspot.com/2013/10/what-is-capital-structure-definition-of.html">capital structure</a> of the company in order to increase the <a href="http://articles-junction.blogspot.com/2013/10/concept-of-risk-and-return-with-diagram.html">returns</a> available to equity <a href="http://articles-junction.blogspot.com/2013/10/shareholders-wealth-maximization.html">shareholders</a>.</p><br />
<h2><span style="color:#333;font-size:small;">Definition of Trading on Equity</span></h2><br />
<p>Definition of Trading on Equity are given in the image below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiyiCH2ldWcED0JdejGBsm5zP1j68JdafDmCnpBrOvafcq15Bl-I88Qz9bhMvYhsk4IWLfRa9ve_uF2agp3-mitqmhtRphCn1QfihJfwUk9F5uMCGfKSiISwoaGIxUyyYLap7qeTdA0lWo/s1600/Definition-of-trading-on-equity.png" imageanchor="1" rel="lightbox-Definition-of-Trading-on-Equity" title="Definition of Trading on Equity"><img class="c1" ad="true" alt="Definition of Trading on Equity" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiyiCH2ldWcED0JdejGBsm5zP1j68JdafDmCnpBrOvafcq15Bl-I88Qz9bhMvYhsk4IWLfRa9ve_uF2agp3-mitqmhtRphCn1QfihJfwUk9F5uMCGfKSiISwoaGIxUyyYLap7qeTdA0lWo/s1600/Definition-of-trading-on-equity.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 232px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>According to <strong>Gerstenberg</strong> the definition of trading on equity are follow:</p><br />
<blockquote>“when a person or a corporation uses borrowed capital as well as owned capital in the regular conduct of its business, he or it is said to be trading on equity.”</blockquote><br />
<h2><span style="color:#333;font-size:small;">Define Trading on Equity</span></h2><br />
<p>Define trading on equity are given in the image below.</p><br />
<div class="separator"><p><a href="https://1.bp.blogspot.com/-jftsrW1FUNk/WQgjOgjERuI/AAAAAAAABe0/XUbH2YW3yoQNR2T0d9ZSLcZdtc-fO2_fACLcB/s1600/Define-Trading-on-Equity.png" imageanchor="1" rel="lightbox-Define-Trading-on-Equity" title="Define Trading on Equity"><img class="c1" ad="true" alt="Define Trading on Equity" border="0" src="https://1.bp.blogspot.com/-jftsrW1FUNk/WQgjOgjERuI/AAAAAAAABe0/XUbH2YW3yoQNR2T0d9ZSLcZdtc-fO2_fACLcB/s1600/Define-Trading-on-Equity.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 239px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>Define trading on equity are follows</p><br />
<p>Trading on Equity the main aim is to ensure maximum possible return on investment to equity <a href="http://articles-junction.blogspot.com/2013/10/problems-and-indications-of.html">shareholders</a> and also adequate managerial control to them. Thus, when a company relies more upon borrowed capital and preference shares, it is said to be trading on equity.</p><br />
<h2><span style="color:#333;font-size:small;">Examples of Trading on Equity</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/08/define-vertical-communication.html">Examples</a> of Trading on Equity are given in the image below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinKJQk_5Z4w2eTEpOPHCw6FiGDQGiF2UimwasObD9jz0_rrhS-XpGucBOSJrfhMf8WvuwP7qUmIJSPGOCCj8kH-vjRmc7DdmL92AIU0VqBvze9qnlrWY0bE-hEPAz6eGozyXG7XTimR8c/s1600/Example-of-Trading-on-Equity.png" imageanchor="1" rel="lightbox-Example-of-Trading-on-Equity" title="Example of Trading on Equity"><img class="c1" ad="true" alt="Example of Trading on Equity" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinKJQk_5Z4w2eTEpOPHCw6FiGDQGiF2UimwasObD9jz0_rrhS-XpGucBOSJrfhMf8WvuwP7qUmIJSPGOCCj8kH-vjRmc7DdmL92AIU0VqBvze9qnlrWY0bE-hEPAz6eGozyXG7XTimR8c/s1600/Example-of-Trading-on-Equity.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 347px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>Examples of Trading on Equity are follows.</p><br />
<p>Suppose the company needs capital of 20,00,000. It may collect the funds as follows :15% Non - convertible debentures 6,00,000 15 % Preference Capital 12,00,000 Equity Capital 2,00,000 20,00,000 Now, if the company makes a net profit of 6,00,000, it will divide it as follows: 15% Non - convertible debentures (6,00,000 X 15%) = 90,000 15 % Preference Capital (12,00,000 X 15%) = 1,80,000 Equity Capital (balance amount) = 3,30,000 6,00,000 Thus, on equity of C 2,00,000, equity shareholders will get a return of C 3,30,000, which comes to be 165%. Thus, from above we can say that Preference Shares and debentures Source is used to give more returns to equity shareholders.</p><br />
<p>Some Important Articles on Finance are given below.</p><br />
<p><a href="http://articles-junction.blogspot.com/2013/09/indian-financial-system-and.html">Indian Financial System and Classification of Financial Market</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/09/functions-of-financial-system-functions.html">Functions of Financial System, Functions of Financial Market</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">Methods of raising funds from capital markets</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/09/what-is-primary-market-functions-of.html">What is Primary Market? Functions of Primary Market</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/10/problems-and-indications-of.html">Problems and Indications of Shareholders Wealth Maximization</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-22577000270351273132017-04-27T06:03:00.000-06:002017-04-27T06:03:37.918-06:00Functions of Nonverbal Communication, Features of Nonverbal Communication<h2><span style="color:#333;font-size:small;">Functions of Nonverbal Communication, Features of Nonverbal Communication</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/09/functions-of-financial-system-functions.html">Functions</a> of <a href="http://articles-junction.blogspot.com/2013/08/different-types-forms-of-nonverbal.html">Nonverbal</a> <a href="http://articles-junction.blogspot.com/2013/07/meaning-of-communication-definition-of.html">Communication</a>, <a href="http://articles-junction.blogspot.com/2014/07/features-of-marketing-nature-of.html">Features</a> of Nonverbal Communication are given the image below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidBg-e7uR9yuB8Ybd8EjwGhlJmNPPnWjF-N8SSJvsZZS6S82mepXANhcpkpjMZLsotzxSfTNVe7J92mRpPvipvDtCuJNyBmJ8A3884CczAJYiBPWfputt18AizGieFksMKJESWBx5GnjY/s1600/Functions-of-Nonverbal-Communication%252C-Features-of-Nonverbal-Communication.png" imageanchor="1" rel="lightbox-Functions-of-Nonverbal-Communication-Features-of-Nonverbal-Communication" title="Functions of Nonverbal Communication, Features of Nonverbal Communication"><img class="c1" ad="true" alt="Functions of Nonverbal Communication, Features of Nonverbal Communication" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidBg-e7uR9yuB8Ybd8EjwGhlJmNPPnWjF-N8SSJvsZZS6S82mepXANhcpkpjMZLsotzxSfTNVe7J92mRpPvipvDtCuJNyBmJ8A3884CczAJYiBPWfputt18AizGieFksMKJESWBx5GnjY/s1600/Functions-of-Nonverbal-Communication%252C-Features-of-Nonverbal-Communication.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height:242px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>Functions of Nonverbal Communication, Features of Nonverbal Communication are follows.</p><br />
<ol type="1"><li>Emphasis's the Message</li>
<li>Contradicts the Spoken Word</li>
<li>Restates <a href="http://articles-junction.blogspot.com/2013/08/define-oral-communication-nature-and.html">Oral Communication</a></li>
<li>Regulates <a href="http://articles-junction.blogspot.com/2013/08/define-grapevine-communication-and-types.html">Communication</a></li>
<li>Complements the Message</li></ol><a name='more'></a><br />
<br />
<p>Now let's discuss each Functions of <a href="http://articles-junction.blogspot.com/2013/08/need-importance-advantages-of-non.html">Nonverbal Communication</a>, Features of Nonverbal Communication one by one</p><br />
<h2><span style="color: black; font-size: medium;"> <b>1. Emphasis's the Message</b></span></h2><p>Nonverbal communication, many people often use gestures, expressions or signals to emphasis their message. These nonverbal signals give an extra force to the message.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>2. Contradicts the Spoken Word</b></span></h2><p>Nonverbal communication, In some cases the nonverbal message is stronger than the verbal message. for E.g. the nonverbal signals can communicate just opposite of what one is thinking, like a frown or a smile can reveal the true feeling of a speaker, in spite of words.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>3. Restates Oral Communication</b></span></h2><p>Nonverbal communication, Sometimes the gestures and the <a href="http://articles-junction.blogspot.com/2013/06/what-is-consumer-movement-meaning.html">movements</a> repeat oral message as they help in describing or explaining a point nonverbally. For E.g. using a hand while saying "good-bye".</p><br />
<h2><span style="color: black; font-size: medium;"> <b>4. Regulates Communication</b></span></h2><p>Nonverbal communication, Nonverbal <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">methods</a> regulate communication. The right gesture and expressions indicate that a topic is over, that the subject has changed or that there is more to discuss.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>5. Complements the Message</b></span></h2><p>Nonverbal communication, Non verbal <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-primary.html">method's</a> compliments verbal communication as they explain a point and help to enrich a message with extra information.</p><br />
<p>Some Important Articles on Nonverbal communication are given below.</p><br />
<p><a href="http://articles-junction.blogspot.com/2013/08/different-types-forms-of-nonverbal.html">Different Types, Forms of Nonverbal Communication</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/08/need-importance-advantages-of-non.html">Need, Importance, Advantages of Non-Verbal Communication</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-18666080069850319832017-04-25T00:32:00.000-06:002017-04-25T01:04:56.519-06:00Advantages/ Examples/ Classification/ Components/ Types of Ecotourism<h2><span style="color:#333;font-size:small;">Advantages, Examples, Classification, Components, Types of Ecotourism</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/08/advantages-and-disadvantages-of-face-to.html">Advantages</a>, <a href="http://articles-junction.blogspot.com/2013/08/define-vertical-communication.html">Examples</a>, <a href="http://articles-junction.blogspot.com/2013/09/indian-financial-system-and.html">Classification</a>, <a href="http://articles-junction.blogspot.com/2013/10/components-of-capital-structure-with.html">Components</a>, Types of Ecotourism are given in the image below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibaQL4F_eXRxwuQcTBMI5VtfBe67wL2o0i5GC5_hBd9c377DUEbp5yKy6tUjsxK1IfmwICS-kanFCFU5pRmeSdG295WAPi2L2cY3iw_ondJ2f2hOgy7ERrsuzWlgHH9MmTMs3sVuc90B8/s1600/Types-of-Ecotourism.png" imageanchor="1" rel="lightbox-Advantages-Examples-Classification-Components-Types-of-Ecotourism" title="Advantages, Examples, Classification, Components, Types of Ecotourism"><img class="c1" ad="true" alt="Advantages, Examples, Classification, Components, Types of Ecotourism" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibaQL4F_eXRxwuQcTBMI5VtfBe67wL2o0i5GC5_hBd9c377DUEbp5yKy6tUjsxK1IfmwICS-kanFCFU5pRmeSdG295WAPi2L2cY3iw_ondJ2f2hOgy7ERrsuzWlgHH9MmTMs3sVuc90B8/s1600/Types-of-Ecotourism.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 608px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>Advantages, Examples, Classification, Components, Types of Ecotourism are follows.</p><br />
<ol type="1"><li>Medical Tourism</li>
<li>Island Tourism</li>
<li>Coastal Tourism</li>
<li>Adventure Tourism</li>
<li>Heritage Tourism</li>
<li>Disaster Tourism</li>
<li>Ayurveda Tourism</li>
<li>Space Tourism</li>
<li>Yoga Tourism</li>
<li>Sports Tourism</li>
<li>War Tourism</li>
<li>Dark Tourism</li>
<li>Geo-Tourism</li>
<li>Education Tourism</li>
<li>Agri Tourism</li>
<li>Shopping Tourism</li></ol><a name='more'></a><br />
<br />
<p>Now let's discuss each Advantages, Examples, Classification, Components, <a href="http://articles-junction.blogspot.com/2013/08/define-grapevine-communication-and-types.html">Types</a> of Ecotourism one by one</p><br />
<h2><span style="color: black; font-size: medium;"> <b>1. Medical Tourism</b></span></h2><p>Ecotourism consists of medical tourism; it is an <a href="http://articles-junction.blogspot.com/2013/06/what-is-need-and-importance-of-consumer.html">important</a> segment in the tourism sector in this world. It has added a new feather to the tourism industry. Many people around the world visit to other places for medical treatment. Many countries have built-up advanced hospital with high tech machineries. In developing countries like India hospitals are equipped with the most advanced machinery throughout the world. Treatments are available at very cheap rates so many people from many Asian countries attracts towards India. For super specialized treatment tourists attract to the developing countries like Thailand, Malaysia and Singapore. The main reason behind the rise of medical tourism is an increase in availability of infrastructure, cheaper rates of airfare, reasonable medicinal cost, etc.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>2. Island Tourism</b></span></h2><p>Ecotourism consists of island <a href="http://articles-junction.blogspot.com/2013/07/five-main-factors-influencing-growth-of.html">tourism</a>; Islands take pleasure in a huge degree of isolation. Island has different ecology in comparison to that of mainland. Proper steps should be taken during the planning of infrastructure services; ecology and development, are essential for the development of the island. Coral reefs, different kinds of fish under blue - green turquoise water, shells, etc. are the attraction centre's of Andaman and Nicobar Islands in India.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>3. Coastal Tourism</b></span></h2><p><a href="http://articles-junction.blogspot.com/2017/04/importance-of-ecotourism-benefits-of.html">Ecotourism</a> consists of coastal tourism, there is a large number of increases in tourism in coastal areas. Coastal sea-beaches are being developed as a resource. Beaches and health resorts are built in coastal areas to attract the tourist. Water sports adventure is emerging concept among the tourist.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>4. Adventure Tourism</b></span></h2><p><a href="http://articles-junction.blogspot.com/2017/04/principles-characteristics-criteria.html">Ecotourism</a> consists of adventure tourism, it include traveling to hostile areas. It also involves traveling to exotic and remote destination. It also consists of trekking, mountaineering, scuba diving, water-rafting, etc. Adventure tourism acquires so much of excitement which attracts more and more tourists. This tourism is would be more exciting if the participants are allowed to move outside of the surrounding.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>5. Heritage Tourism</b></span></h2><p>Ecotourism consists of heritage tourism; It includes visiting railways, battleground, visiting to historical or cultural sites that may cover old buildings, etc. The main <a href="http://articles-junction.blogspot.com/2013/07/explain-concept-of-global-village.html">concept</a> of this tourism is to make a realization of the past to the people.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>6. Heritage Tourism</b></span></h2><p>Ecotourism consists of disaster <a href="http://articles-junction.blogspot.com/2013/07/define-tourism-type-feature-of-tourism.html">tourism</a>. It includes traveling to such places where disaster has taken place just as a matter of curiosity. However, such behavior of tourist is not correct to visit to a disaster place it may cause hindrance in rescue, in recovery operations and relief work.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>7. Ayurveda Tourism</b></span></h2><p>Ecotourism consists of ayurveda tourism; it is considered as the natural healing system. It is a branch of medicine has a curative revitalizing power correlated with. For ayurveda tourism, <a href="http://articles-junction.blogspot.com/2013/09/indian-financial-system-and.html">India</a> is gaining too much of importance. There are a number of resorts in Kerla India offer ayurveda health holiday packages.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>8. Space Tourism</b></span></h2><p>Ecotourism consists of space tourism. It is a recent phenomenon of tourists paying for flight into space. It is a unique experience and trill of looking Earth from space.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>9. Yoga Tourism</b></span></h2><p>Ecotourism consists of yoga tourism; it is also on the increasing way. Tourists are given crash courses. For last 10 years, international yoga week is being organized at Rishikesh.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>10. Sports Tourism</b></span></h2><p>Ecotourism consists of sports tourism, In this tourism people travel to participate or to enjoy different sports. For example, Asian Games, Olympic games, etc.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>11. War Tourism</b></span></h2><p>Ecotourism consists of war tourism. Here tourist visits famous Warfield & battlefields. For example, Haldi Ghat in Rajasthan, etc.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>12. Dark Tourism</b></span></h2><p>Ecotourism consists of dark tourism. It is also known as Black Tourism. It involves travel to sites associated with death & sufferings.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>13. Geo-Tourism</b></span></h2><p>Ecotourism consists of geo-tourism. It is 'best practice' tourism that increases the geographical character to a place. For e.g. Niagra, water falls in North America.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>14. Education Tourism</b></span></h2><p>Ecotourism consists of education tourism. Here students go too far off or foreign places for higher studies. This Tourism is also on the rise now-a-days</p><br />
<h2><span style="color: black; font-size: medium;"> <b>15. Agri Tourism</b></span></h2><p>Ecotourism consists of agri tourism; it takes place on farms. It is a unique form of tourism. Mostly practiced in wine growing regions such as Australia, Italy, Spain, etc.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>16. Shopping Tourism</b></span></h2><p>Ecotourism consists of shopping tourism. This involves visiting places for shopping. Tourists travel around the world for good and quality shopping. For example, people go to Dubai for shopping in fair known as DSF (Dubai Shopping Festival). It's a duty-free port.</p><br />
<p>Some Important Articles on Ecotourism are given below.</p><br />
<p><a href="http://articles-junction.blogspot.com/2017/04/principles-characteristics-criteria.html">Principles, Characteristics, Criteria, Concepts of Ecotourism</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2017/04/importance-of-ecotourism-benefits-of.html">Importance of Ecotourism, Benefits of Ecotourism</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/five-main-factors-influencing-growth-of.html">Five Main Factors Influencing the Growth of Tourism With Diagram</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/define-tourism-type-feature-of-tourism.html">Define Tourism? Type Feature of Tourism</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/what-is-new-tourism-meaning-types-and.html">What is New Tourism? Meaning, Types and Aspects</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/impact-of-tourism-on-environment.html">Impact of Tourism on Environment</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-762662755154138512017-04-22T20:24:00.001-06:002017-04-25T00:41:35.111-06:00Principles / Characteristics / Criteria / Concepts of Ecotourism <h2><span style="color:#333;font-size:small;">Principles, Characteristics, Criteria, Concepts of Ecotourism</span></h2><br />
<p>Principles, <a href="http://articles-junction.blogspot.com/2013/07/meaning-definition-nature.html">Characteristics</a>, Criteria, <a href="http://articles-junction.blogspot.com/2013/10/concept-of-risk-and-return-with-diagram.html">Concepts</a> of Ecotourism are given in the image below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjr0vh_NHtHM2CmH2XiqtqxZZW_JB6cmOUgonxL_eVikVOO_GEzQzUY36iP5XoZJWmlTxhn5TAx1UlID51mbsMjaCDdBoGFQ5-i73Eetl5JJxLRBYvjaKRk2uzuleR_fICYZ2_eL4FwHYA/s1600/Principles%252C--Characteristics%252C--Criteria%252C--Concepts-of-Ecotourism.png" imageanchor="1" rel="lightbox-Principles-Characteristics-Criteria-Concepts-of-Ecotourism" title="Principles, Characteristics, Criteria, Concepts of Ecotourism"><img class="c1" ad="true" alt="Principles, Characteristics, Criteria, Concepts of Ecotourism" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjr0vh_NHtHM2CmH2XiqtqxZZW_JB6cmOUgonxL_eVikVOO_GEzQzUY36iP5XoZJWmlTxhn5TAx1UlID51mbsMjaCDdBoGFQ5-i73Eetl5JJxLRBYvjaKRk2uzuleR_fICYZ2_eL4FwHYA/s1600/Principles%252C--Characteristics%252C--Criteria%252C--Concepts-of-Ecotourism.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 290px;" /></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>Principles, Characteristics, Criteria, Concepts of <a href="http://articles-junction.blogspot.com/2017/04/importance-of-ecotourism-benefits-of.html">Ecotourism</a> are follows.</p><br />
<ol type="1"><li>Sustainability</li>
<li>Public Involvement</li>
<li>Conservation</li>
<li><a href="http://articles-junction.blogspot.com/2013/07/define-education-and-training.html">Education</a> </li>
<li><a href="http://articles-junction.blogspot.com/2013/07/what-is-green-business-guidelines-to.html">Green Efforts</a></li></ol><a name='more'></a><br />
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<p>Now let's discuss each <a href="http://articles-junction.blogspot.com/2014/07/principles-of-insurance-basic.html">Principles</a></li>, Characteristics, Criteria, Concepts of Ecotourism one by one.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>1. Sustainability</b></span></h2><p><a href="http://articles-junction.blogspot.com/2013/07/five-main-factors-influencing-growth-of.html">Ecotourism</a> satisfies the objective of sustainability. While visiting the eco-sensitive area,s ecological balance is maintained.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>2. Public Involvement</b></span></h2><p>Ecotourism, whether <a href="http://articles-junction.blogspot.com/2013/07/what-is-new-tourism-meaning-types-and.html">tourism</a> is included. Whether tourism helps the area of that region to develop because of tourism, it has a sensitive effect on the community. The local people should generate profit from the resources which they wish to share among the tourism.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>3. Conservation </b></span></h2><p>Ecotourism, conservation plays a vital role, the protection of forest areas are must. The flora and fauna habitat should be reserved, and no human intervention should be allowed. Care must be taken while visiting such areas the species should be allowed to survive and thrive.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>4. Education </b></span></h2><p>Ecotourism, it should be necessary to educate the people about <a href="http://articles-junction.blogspot.com/2013/07/impact-of-tourism-on-environment.html">environment</a>. The educational program should be conducted among the people to make them understand the importance to preserve the natural resources as well as their culture.</p><br />
<h2><span style="color: black; font-size: medium;"> <b>5. Green Efforts </b></span></h2><p>Ecotourism consists of <a href="http://articles-junction.blogspot.com/2013/07/green-consumption-definition-green.html">green</a>. hotels. It is also popularly known as ecotels. Such hotels used recycled water. They also do the conservation of energy. Thus this helps in conserving the valuable natural resources.</p><br />
<p>Some Important Articles on Ecotourism are given below.</p><br />
<p><a href="http://articles-junction.blogspot.com/2017/04/advantages-examples-classification.html">Advantages, Examples, Classification, Components, Types of Ecotourism</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2017/04/importance-of-ecotourism-benefits-of.html">Importance of Ecotourism, Benefits of Ecotourism</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/five-main-factors-influencing-growth-of.html">Five Main Factors Influencing the Growth of Tourism With Diagram</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/define-tourism-type-feature-of-tourism.html">Define Tourism? Type Feature of Tourism</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/what-is-new-tourism-meaning-types-and.html">What is New Tourism? Meaning, Types and Aspects</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/impact-of-tourism-on-environment.html">Impact of Tourism on Environment</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com1tag:blogger.com,1999:blog-8295104352019308349.post-15680253948509566752017-04-19T00:51:00.000-06:002017-05-01T12:02:26.956-06:00Definition of Management <h2><span style="color:#333;font-size:small;">Definition of Management</span></h2><br />
<p>Definitions of <a href="http://articles-junction.blogspot.com/2017/04/define-management.html">Management</a> are given below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLuByqAd07V7Hx_UGRAVNOzAqDvP3aCvhhLgmDhUoj1fdBnNibA097elvCzcMWUEgEer1WtGdPwtIipwJs9nOZReQ0cgcpppuBa5Sc5-81xC_fbZ0VJzMYGxr2DJQFCKhJAvcj3N6-QhE/s1600/Definition-of-Management.png" imageanchor="1" rel="lightbox-Definition-of-Management" title="Definition of Management"><img class="c1" ad="true" alt="Definition of Management" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLuByqAd07V7Hx_UGRAVNOzAqDvP3aCvhhLgmDhUoj1fdBnNibA097elvCzcMWUEgEer1WtGdPwtIipwJs9nOZReQ0cgcpppuBa5Sc5-81xC_fbZ0VJzMYGxr2DJQFCKhJAvcj3N6-QhE/s1600/Definition-of-Management.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 310px;"/></a></p></div><p>Image credits © Manoj Patil.</p><a name='more'></a><br />
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<h2><span style="color:#333;font-size:small;">Definition of Management by Mary Parker Follet</span></h2><br />
<p>Definition of <a href="http://articles-junction.blogspot.com/2013/08/need-importance-significance-role-of.html">Management</a> by Mary Parker Follet given in the image below.</p><br />
<div class="separator"><p><a href="https://3.bp.blogspot.com/-qKLVfs0MFG8/WPb1Ls-6CPI/AAAAAAAABbM/h8GDHo_K2SYGiukkJGvB_KUW7-Kdr5TEwCLcB/s1600/Definition-of-Management-by-Mary-Parker-Follet.png" imageanchor="1" rel="lightbox-Definition-of-Management-by-Mary-Parker-Follet" title="Definition of Management by Mary Parker Follet"><img class="c1" ad="true" alt="Definition of Management by Mary Parker Follet" border="0" src="https://3.bp.blogspot.com/-qKLVfs0MFG8/WPb1Ls-6CPI/AAAAAAAABbM/h8GDHo_K2SYGiukkJGvB_KUW7-Kdr5TEwCLcB/s1600/Definition-of-Management-by-Mary-Parker-Follet.png"" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 258px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>According to <strong>Mary Parker Follet</strong> the definition of Management are follow:</p><br />
<blockquote>“Management is an art of getting things done through people.”</blockquote><br />
<h2><span style="color:#333;font-size:small;">Definition of Management by Harold Koontz</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/meaning-of-communication-definition-of.html">Definition</a> of Management by Harold Koontz given in the image below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEnugLJ2lBzPGylDydYhO_XK1IyuRtsE8CLfUBCzemNw01mgZaSeMQGnwvCK7ZBwGJPqPTpDNBwfRzLNb5qvSlw4S8mhHGob2vAeVLb0eGd_qcfouihXwQVGN18zCGPaJBS3sCIrN0bY0/s1600/Definition-of-Management-by-Harold-Koontz.png" imageanchor="1" rel="lightbox-Definition-of-Management-by-Harold-Koontz" title="Definition of Management by Harold Koontz"><img class="c1" ad="true" alt="Definition of Management by Harold Koontz" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEnugLJ2lBzPGylDydYhO_XK1IyuRtsE8CLfUBCzemNw01mgZaSeMQGnwvCK7ZBwGJPqPTpDNBwfRzLNb5qvSlw4S8mhHGob2vAeVLb0eGd_qcfouihXwQVGN18zCGPaJBS3sCIrN0bY0/s1600/Definition-of-Management-by-Harold-Koontz.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 242px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>According to <strong>Harold Koontz</strong> the definition of Management are follow:</p><br />
<blockquote>“Management is the art of getting things done through and with people in formally organized groups.”</blockquote><br />
<h2><span style="color:#333;font-size:small;">Definition of Management by Lawrence Appley</span></h2><br />
<p>Definition of Management by Lawrence Appley given in the image below.</p><br />
<div class="separator"><p><a href="https://3.bp.blogspot.com/-Qje4tneo4pg/WPb76fs2RNI/AAAAAAAABb8/A0YLv0hNxH0LNf1P7laTmWbJMUvS9EYFwCLcB/s1600/Definition-of-Management-by-Lawrence-Appley.png" imageanchor="1" rel="lightbox-Definition-of-Management-by-Lawrence-Appley" title="Definition of Management by Lawrence Appley"><img class="c1" ad="true" alt="Definition of Management by Lawrence Appley" border="0" src="https://3.bp.blogspot.com/-Qje4tneo4pg/WPb76fs2RNI/AAAAAAAABb8/A0YLv0hNxH0LNf1P7laTmWbJMUvS9EYFwCLcB/s1600/Definition-of-Management-by-Lawrence-Appley.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 223px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>According to <strong>Lawrence Appley</strong> the definition of Management are follow:</p><br />
<blockquote>“Management is the accomplishment of results through the efforts of other people.”</blockquote><br />
<h2><span style="color:#333;font-size:small;">Definition of Management by Hendri Fayol</span></h2><br />
<p>Definition of Management by Hendri Fayol given in the image below.</p><br />
<div class="separator"><p><a href="https://4.bp.blogspot.com/-Xvza2tuHPYE/WPcACIYF_eI/AAAAAAAABcU/I4Fkk6TnXq4AD8cdVtW09GzoG5ZGHmaGwCLcB/s1600/Definition-of-Management-byHendri-Fayol.png" imageanchor="1" rel="lightbox-Definition-of-Management-by-Hendri-Fayol" title="Definition of Management by Hendri Fayol"><img class="c1" ad="true" alt="Definition of Management by Hendri Fayol" border="0" src="https://4.bp.blogspot.com/-Xvza2tuHPYE/WPcACIYF_eI/AAAAAAAABcU/I4Fkk6TnXq4AD8cdVtW09GzoG5ZGHmaGwCLcB/s1600/Definition-of-Management-byHendri-Fayol.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 219px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>According to <strong>Hendri Fayol</strong> the definition of Management are follow:</p><br />
<blockquote>“To manage is to forecast and to plan, to organize, to command, to coordinate and to control.”</blockquote><br />
<h2><span style="color:#333;font-size:small;">Definition of Management by Peter Drucker</span></h2><br />
<p>Definition of Management by Peter Drucker given in the image below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisDza2c4sqGBw_TtYnwYlPJUsmRweah16-EyV-g7Ba4dZ2GOiSUA2yFXnbF5w2tFr7hwwVCRJ_Dqw74HF3d7HwzGyvZNnufBJ4EdIdn8aQnMQH6n_SqWlh9y9MRZtZtq8nwR9zJhDgVs4/s1600/Definition-of-Management-by-Peter-Drucker.png" imageanchor="1" rel="lightbox-Definition-of-Management-by-Peter-Drucker" title="Definition of Management by Peter Drucker"><img class="c1" ad="true" alt="Definition of Management by Peter Drucker" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEisDza2c4sqGBw_TtYnwYlPJUsmRweah16-EyV-g7Ba4dZ2GOiSUA2yFXnbF5w2tFr7hwwVCRJ_Dqw74HF3d7HwzGyvZNnufBJ4EdIdn8aQnMQH6n_SqWlh9y9MRZtZtq8nwR9zJhDgVs4/s1600/Definition-of-Management-by-Peter-Drucker.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 232px;"/></a></p></div><p>Image credits © Manoj Patil.</p><br />
<p>According to <strong>Peter Drucker</strong> the definition of Management are follow:</p><br />
<blockquote>“Management is a multi-purpose organ that manages a business, manages managers and manages workers and work.”</blockquote><br />
<p>Some Important Articles on Management are given below.</p><br />
<p><a href="http://articles-junction.blogspot.com/2017/04/define-management.html">Define Management</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/08/need-importance-significance-role-of.html">Need, Importance, Significance, Role of Management</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-91974947639384738582017-04-18T09:06:00.001-06:002017-04-18T20:58:40.472-06:00Define Management<h2><span style="color:#333;font-size:small;">Define Management</span></h2><br />
<p>Define <a href="http://articles-junction.blogspot.com/search/label/Management.html">Management</a> are depicted in image below.</p><br />
<div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguCXzVN4LUCIDEcIwmIbXqsgpsCQ3zEEaakKFg0TcHP0U6iJeRVT7NjoJ1zANNUaCa3HkXStFo9MaEjmxduxWxgCbTmh6mZfHSFIc_rANPkuVqdwHJT24g316lQPIiKhtuKfLuRnSg5Xs/s1600/Define-Management.png" imageanchor="1" rel="lightbox-Define-Management" title="Define Management"><img class="c1" ad="true" alt="Define Management" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguCXzVN4LUCIDEcIwmIbXqsgpsCQ3zEEaakKFg0TcHP0U6iJeRVT7NjoJ1zANNUaCa3HkXStFo9MaEjmxduxWxgCbTmh6mZfHSFIc_rANPkuVqdwHJT24g316lQPIiKhtuKfLuRnSg5Xs/s1600/Define-Management.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 230px;"/></a></p></div><p>Image credits © Manoj Patil.</p><a name='more'></a><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/define-spatial-interaction-basis-of.html">Define</a> Management are follows:</p><br />
<p>In isolation, man does not live. For getting his work done he seeks helps from other people. However, all people have different identities from each other in terms of efficiency, skill, capacity, knowledge, attitude, etc. It has become a very difficult task for him to extract work from various people with the aim of obtaining maximum profits with minimum expense. In <a href="http://articles-junction.blogspot.com/2013/07/role-ojective-function-need-importance.html">management</a>, the individual's co-ordination helps to fulfill the desired goal. For completions of any work, there are some essential factors are needed such as machinery, men, materials, methods, organizing, planning, etc. <a href="http://articles-junction.blogspot.com/2013/07/meaning-definition-nature.html">Management</a> consists of various factors such as co-ordination, planning, controlling, directing, staffing and organizing when all these factors come together then every goal of the individual is achieved effectively and efficiently.</p><br />
<p>The quality of management largely decides the survival and prosperity of any organization. Because of proper management, any organizing can prosper in good times, and sustains in bad time. So by selecting smart, dynamic and dedicated managers in the organization play a vital role. For the survival of any enterprise, a high-quality management plays an <a href="http://articles-junction.blogspot.com/2013/07/importance-of-communication-in.html">important</a> role.</p><br />
<p>Some Important Articles on Management are given below.</p><br />
<p><a href="http://articles-junction.blogspot.com/2013/08/need-importance-significance-role-of.html">Need, Importance, Significance, Role of Management</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/meaning-definition-nature.html">Nature/Characteristics/Features of Professional Mangement </a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/role-ojective-function-need-importance.html">Role/Objective/Function/Need/Importance of Professional Management</a></p><br />
Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-91425833606327188942017-04-08T14:26:00.001-06:002017-04-22T21:03:32.926-06:00Importance of Ecotourism, Benefits of Ecotourism<h2><span style="color:#333;font-size:small;">Importance of Ecotourism, Benefits of Ecotourism</span></h2><br />
<p>Benefits and <a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Importance</a> of <a href="http://articles-junction.blogspot.com/2013/07/five-main-factors-influencing-growth-of.html">Ecotourism</a> are given in the image below.</p><div class="separator"><p><a href="https://3.bp.blogspot.com/-Md8MOl9t20w/WOlFUHf_pFI/AAAAAAAABZw/OVJpw70XXzQs5_O8bLMEHAOtOkgrG8b-QCLcB/s1600/Importance%2Bof%2BEcotourism.png" imageanchor="1" rel="lightbox-Importance-of-Ecotourism" title="Importance of Ecotourism"><img class="c1" ad="true" alt="Importance of Ecotourism" border="0" src="https://3.bp.blogspot.com/-Md8MOl9t20w/WOlFUHf_pFI/AAAAAAAABZw/OVJpw70XXzQs5_O8bLMEHAOtOkgrG8b-QCLcB/s1600/Importance%2Bof%2BEcotourism.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 363px;" /></a></p></div><p>Image credits © Manoj Patil.</p><ol type="1"><li>Helps in protections of sensitive environmental <a href="http://articles-junction.blogspot.com/2013/07/eight-main-factors-influencing-location.html">locations</a>.</li>
<li>Helps in minimizing the <a href="http://articles-junction.blogspot.com/2013/07/ten-major-environmental-problems.html">environmental</a> impact on the earth.</li>
<li>It generates income opportunities for the local people.</li>
<li>Helps in learning and understanding cultures of <a href="http://articles-junction.blogspot.com/2013/08/different-types-forms-of-nonverbal.html">different</a> communities.</li>
<li>An awareness to conserve environment is created.</li>
<li>It helps to get closer to the nature's beauty.</li>
<li>Awareness is created to protect endangered species of the earth.</li>
</ol><a name='more'></a><br />
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<p><strong>Benefits</strong> and Importance of <a href="http://articles-junction.blogspot.com/2017/04/principles-characteristics-criteria.html">Ecotourism</a> are follows.</p><h2><span style="color:#333;font-size:small;">1. Helps in protections of sensitive environmental locations.</span></h2><br />
<p>Ecotourism helps in protections of sensitive environmental locations. The protection should be given to the sensitive environmental areas to maintain their unique qualities of environment. Preservation of nature is must maintain ecological balance of nature. <a href="http://articles-junction.blogspot.com/2013/07/write-note-on-development-of.html">Development</a> should be prohibited near to the forest areas. It thus helps to maintain bio-diversity of the city by preserving environment.</p><br />
<h2><span style="color:#333;font-size:small;">2. Helps in minimizing the environmental impact on the earth.</span></h2><br />
<p>Ecotourism helps in minimizing the environmental impact on the earth. The conservation of forest, water, electricity, fuel, coal, etc., should be done. The awareness programs should be conducted in the tour to make understand the people about importance of environment.</p><br />
<h2><span style="color:#333;font-size:small;">3. It generates income opportunities for the local people.</span></h2><br />
<p>Ecotourism helps in generates income opportunities for the local people. Benefits of tourism help to boast the economy of the country. <a href="http://articles-junction.blogspot.com/2013/07/define-tourism-type-feature-of-tourism.html">Tourism</a> offers direct jobs to tourist guides, agriculture, food and Hotel ling industry. It helps in improving the standard of the local people.</p><br />
<h2><span style="color:#333;font-size:small;">4. Helps in learning and understanding cultures of different communities.</span></h2><br />
<p>Ecotourism helps in learning and understanding cultures of different communities. Its helps to knowing the different religion and lifestyles of the people. Tourists visit Spain for LA Tomatina festival. People throw tomatoes on each other just for entrainment intention.</p><br />
<h2><span style="color:#333;font-size:small;">5. An awareness to conserve environment is created.</span></h2><br />
<p>Ecotourism creates a awareness to conserve environment. The protection of forest should be done on the large scale to preserve the nature. Everyone should take initiative in planting more and more numbers of trees. The flora and fauna should be protected.</p><br />
<h2><span style="color:#333;font-size:small;">6. It helps to get closer to the nature beauty.</span></h2><br />
<p>Ecotourism helps to get closer to the nature beauty. The trees, mountains, river, gardens, etc. are created by the universe. The <a href="http://articles-junction.blogspot.com/2013/07/green-consumption-definition-green.html">green</a> gardens the salient canyons make the tourist happy. By spending times in such a nature's beauty tourist gets closer to nature; he starts preserving things, which are perishable in the nature. Thus helps in establishing a bond with the nature.</p><br />
<h2><span style="color:#333;font-size:small;">7. Awareness is created to protect endangered species of the earth.</span></h2><br />
<p>Ecotourism creates a awareness to <a href="http://articles-junction.blogspot.com/2013/06/what-is-need-and-importance-of-consumer.html">protect</a> endangered species of the earth. Awareness program should be conducted in the tour to educate a tourist, and to our generation about endangered species. Ecosystem should be protected, which would definitely not only preserve but also increase the production of endangered species.</p><br />
<p>Some Important Articles on Ecotourism are given below.</p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/five-main-factors-influencing-growth-of.html">Five Main Factors Influencing the Growth of Tourism With Diagram</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2017/04/principles-characteristics-criteria.html">Principles, Characteristics, Criteria, Concepts of Ecotourism</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/define-tourism-type-feature-of-tourism.html">Define Tourism? Type Feature of Tourism</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/what-is-new-tourism-meaning-types-and.html">What is New Tourism? Meaning, Types and Aspects</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/impact-of-tourism-on-environment.html">Impact of Tourism on Environment</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-47975499871698770452017-04-05T16:41:00.000-06:002017-04-05T16:44:41.706-06:00Importance of Product Branding<h2><span style="color:#333;font-size:small;">Importance of product branding</span></h2><br />
<p>Importance of product branding is given in the image below.</p><div class="separator"><p><a href="https://2.bp.blogspot.com/--5HDGOeCQ5U/WOVvu56eSQI/AAAAAAAABZE/xRW4ZW8VwZY5EgH5oNrboKZSz44D8PrrACLcB/s1600/Importance-of-Product-Branding.png" imageanchor="1" rel="lightbox-Importance-of-Product-Branding" title="Importance of Product Branding"><img class="c1" ad="true" alt="Importance of Product Branding" border="0" src="https://2.bp.blogspot.com/--5HDGOeCQ5U/WOVvu56eSQI/AAAAAAAABZE/xRW4ZW8VwZY5EgH5oNrboKZSz44D8PrrACLcB/s1600/Importance-of-Product-Branding.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 332px;" /></a></p></div><p>Image credits © Manoj Patil.</p><a name='more'></a><br />
<p>Importance of product branding means giving a unique or a different identification to a product from competitor product in the form of name, mark, or any number. <strong>Multi</strong> product Branding in marketing is highly essential for advertising and promotional of the product. Branding in marketing makes the product recognizable to the customers. The chief motive of branding is to differentiate the product from the products of other competitors in the market.</p><p>In importance of product branding registration of the product is the most essential thing. When the brand gets registered it gets a legal protection termed as Trade Mark. Trade Marks ensures that this brand belongs to the specific company, so no one can use this brand. The word "R" in the circle of every single package shows that's this brand is registered duty. The image of the organization can be developed around the brand. In sales promotion, branding is the most powerful instrument. A special consumer preference is created within the mind of the people by registration of a brand.</p><p>Importance of product branding gives a personal assurance for maintaining the quality and standard of the product as per advertisement. Branding is very important to build the product picture in the market. Every brand in the marketing has something singularity to its product, for example, usage, specialty, quality, etc. The producer of the brand always remembered that the advertisement of the product should be short and simple so that it gets noticed immediately.</p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-59128007218287622452017-03-31T12:46:00.000-06:002017-04-01T16:46:50.037-06:00Advantages of Market Opportunity Analysis<h2><span style="color:#333;font-size:small;">Advantages of Market Opportunity Analysis</span></h2><br />
<p>Advantages of Market opportunity analysis are depicted in image below.</p><div class="separator"><p><a href="https://1.bp.blogspot.com/-xOVC5P19I14/WN6ifiZ6ChI/AAAAAAAABX8/mseA5r3okfEVp2WqY9G9np_3U3eSQ4xSQCLcB/s1600/Advantages%2Bof%2BMarket%2BOpportunity%2BAnalysis.png" imageanchor="1" rel="lightbox-Advantages-of-Market-Opportunity" title="Advantages of Market Opportunity Analysis"><img class="c1" ad="true" alt="Advantages of Market Opportunity Analysis" border="0" src="https://1.bp.blogspot.com/-xOVC5P19I14/WN6ifiZ6ChI/AAAAAAAABX8/mseA5r3okfEVp2WqY9G9np_3U3eSQ4xSQCLcB/s1600/Advantages%2Bof%2BMarket%2BOpportunity%2BAnalysis.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 702px;" /></a></p></div><a name='more'></a><p>Image credits © Manoj Patil.</p><p>Advantages of Market opportunity analysis are followed:</p><ol type="1"><li>Market opportunity analysis helps to identify customer needs and accordingly design and deliver the products to generate customer satisfaction.</li>
<li>Market opportunity analysis may allow the company to enhance its corporate image.</li>
<li>Market opportunity analysis may enable the firm to gain competitive advantage over the market due to introduction of customer-oriented products.</li>
<li>Market opportunity analysis allows firm to make optimal use of available resources.</li>
<li>Market opportunity analysis helps a firm to accomplish its organizational objectives such as, increase in market share, profits, etc.</li>
<li>Market opportunity analysis may enable a firm to spread out its business in existing markets as well as in new markets.</li>
</ol><br />
Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-5156387159205009352014-07-22T05:08:00.000-06:002014-07-22T05:13:32.496-06:00Importance of Marketing - Importance of Marketing Plan<h2><span style="color:#333;font-size:small;">Importance of Marketing</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Importance of Marketing</a> <strong>strategy</strong>, <strong>Plan</strong> is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBE04OImu_xejDh0J0hcfZ925Uqrt1nu_5ovJ_1qpVD1zIeu-3LPpoOHs0nRp-uhrnc7DjtV_arBKJkoXqBRpW9Jr05ZNuoYWJIZ725KP5rrKPx8DOAYoerTGRZQEHTgofQDE5cWQHxP8/s1600/Importance+of+Marketing.png" imageanchor="1" rel="lightbox-Importance-of-Marketing" title="Importance of Marketing"><img class="c1" ad="true" alt="Importance of Marketing" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBE04OImu_xejDh0J0hcfZ925Uqrt1nu_5ovJ_1qpVD1zIeu-3LPpoOHs0nRp-uhrnc7DjtV_arBKJkoXqBRpW9Jr05ZNuoYWJIZ725KP5rrKPx8DOAYoerTGRZQEHTgofQDE5cWQHxP8/s1600/Importance+of+Marketing.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 263px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Importance of <a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">Marketing</a> in <strong>organizational success</strong> are given below.</p><ol type="1"><li>Customer Satisfaction</li><li>Competitive Advantage</li><li>Corporate Image</li><li>Expansion of Business</li><li><a href="http://articles-junction.blogspot.com/2013/07/what-are-economic-activities.html">Economies</a> of Scale</li><li>Efficiency</li><li>Organizational Objectives</li>
<li>Optimum Use of Resources</li><li>Brand Loyalty</li><li>Brand Equity</li>
<li>Brand Image</li><li>Benefits to Stakeholders</li></ol><a name='more'></a><p>Importance of <a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Marketing</a> to <strong>business firms</strong> are as follows:</p><h2><span style="color:#333;font-size:small;">1. Customer Satisfaction</span></h2><br />
<p>Importance of <a href="http://articles-junction.blogspot.com/2014/07/features-of-marketing-nature-of.html">marketing</a> <strong>strategy</strong>, customer satisfaction is the main focus of the marketers in today's scenario. The product performance and customer expectation has a correlation between customer satisfaction.</p><ul><li>When product performance is below customer expectation, the customer is dissatisfied.</li><li>When product performance matches with customer expectation, the customer is satisfied.</li><li>When product performance exceeds customer expectation, the customer is delighted.</li><li>When product performance exceeds very much more than expectation, the customer is astonished.</li></ul><p><strong>Examples of importance of <a href="http://articles-junction.blogspot.com/2014/07/4-ps-of-marketing-mix-elements-of.html">marketing</a></strong></p><p>In case of after-sale-service of consumer durable like AC, TV, etc.:</p><p>When a customer does not get service, as agreed upon, or the customer gets service only after repeated reminders to the service centre, the customer gets dissatisfied. Such customer may spoil the name of the firm.</p><p>When a customer gets additional service during the service period, which was not agreed upon by the seller, the customer is delighted.</p><p>When a customer gets additional service (free of cost) beyond the service period, the customer is astonished.</p><h2><span style="color:#333;font-size:small;">2. Competitive Advantage</span></h2><br />
<p>Importance of the <a href="http://articles-junction.blogspot.com/2014/07/features-of-marketing-nature-of.html">marketing</a> <strong>plan</strong>, because of effective marketing there is healthy competition in the market. The proactive nature of the <a href="http://articles-junction.blogspot.com/2013/07/meaning-definition-nature.html">professional</a> marketers helps in the decision-making process. They come up with:</p><ul><li>Inventive and creative designs or patterns.</li>
<li>Artistic promotion plans.</li><li>Efficient customer relationship systems, etc.</li></ul><p>The pro-active decisions give a competitive advantage to the <a href="http://articles-junction.blogspot.com/2013/07/role-ojective-function-need-importance.html">professional</a> marketers.</p><h2><span style="color:#333;font-size:small;">3. Corporate Image</span></h2><br />
<p>Importance of Marketing to <strong>business firms</strong> builds and intensifies its corporate image. Higher performance of the firm is achieved due to effective and efficient marketing strategies (price, right product, etc.). Hence corporate image ameliorates, which develops trust and confidents in the minds of Employees, Customers, Dealers, Suppliers, <a href="http://articles-junction.blogspot.com/2013/10/shareholders-wealth-maximization.html">Shareholders</a> and other stakeholders.</p><p>A good corporate image of the firm attracts many investors, which help the firm to widen and diversify it horizons. The support of various investors is required for the survival and success of the organization.</p><h2><span style="color:#333;font-size:small;">4. Expansion of Business</span></h2><br />
<p>Importance of Marketing, efficient marketing helps to grow the <a href="http://articles-junction.blogspot.com/2013/07/what-is-green-business-guidelines-to.html">business</a> from local, national, to international level. Market-related activities help the firm to expand its <a href="http://articles-junction.blogspot.com/2013/07/define-advice-importance-of-advice-in.html">business</a> such as:</p><ul><li><strong>Product development strategy</strong>: introduction of new products in the existing markets or modern markets.</li><li><strong>Market development strategy</strong>: entering in new markets with the existing products or new products.</li>
<li><strong>Market penetration strategy</strong>: increasing marketing efforts in the current markets.</li></ul><h2><span style="color:#333;font-size:small;">5. Economies of Scale</span></h2><br />
<p>Importance of Marketing in <strong>organizational success</strong>, professional marketers take proactive decisions. Therefore, there is an increase in demand for the firm's products. Increase in demand results in large-scale production and distribution. As a result, the company gets economies of large scale such as:</p><ul><li>Economies of large-scale distribution such as discount on bulk purchase of materials.</li><li>Economies of large-scale distribution such as the freight concession due to bulk transportation.</li></ul><h2><span style="color:#333;font-size:small;">6. Efficiency</span></h2><br />
<p>Importance of Marketing, effective marketing brings higher profits. A part of the profits is spent on various activities such as:</p><ul><li>Research and development.</li><li>Technology up gradation.</li><li><a href="http://articles-junction.blogspot.com/2013/07/advantages-and-disadvantages-of_30.html">Training</a> and development, etc.</li></ul><p>All the above activities improve efficiency of the firm, i.e... The firm gets higher returns at lower costs.</p><h2><span style="color:#333;font-size:small;">7. Organizational Objectives</span></h2><br />
<p>Importance of Marketing, organizational objectives of the firm are accomplished with the help of marketing. Inventive and creative designs or patterns, Artistic promotion plans and distribution are in a proper manner then it helps the firm to achieve increment in sales. The following is the objectives:</p><ul><li>Increase in profits.</li><li>Improved brand image.</li>
<li>Increase in market share.</li><li>Improved corporate image.</li><li>Enhanced customer loyalty, etc.</li></ul><h2><span style="color:#333;font-size:small;">8. Optimum Use of Resources</span></h2><br />
<p>Importance of Marketing, due to effective marketing, the company gets higher demand for goods / services. Increase in demand leads to higher production and distribution. Therefore, a firm can make optimum use of resources such as:</p><ul><li><strong>Physical resources</strong>: machines, equipments, tools, etc.</li><li><strong><a href="http://articles-junction.blogspot.com/2013/10/what-is-capital-structure-definition-of.html">Capital</a> resources</strong>: working <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">capital funds</a> and fixed <a href="http://articles-junction.blogspot.com/2013/10/components-of-capital-structure-with.html">capital</a> funds.</li><li><strong>Manpower</strong>: managerial and non-managerial employees.</li></ul><h2><span style="color:#333;font-size:small;">9. Brand Loyalty</span></h2><br />
<p>Importance of Marketing, brand loyalty of the product grows due to effective marketing. Brand loyalty refers to:</p><ul><li>Repeat purchases by satisfied / delighted customers.</li><li>Brand loyalty of the product increases by <a href="http://articles-junction.blogspot.com/2013/07/define-suggestion-advantages-and.html">suggestions</a> and reviews of existing clients / customers to friends, neighbors, etc.</li></ul><p>Marketing guru <strong>Al Ries</strong> says, “that customer word-of-mouth is the best alternative to advertising.” He calls such a customer as an evangelist (religious believer). This is because; loyal customers influence others to buy those brands, with which they are satisfied.</p><h2><span style="color:#333;font-size:small;"> 10. Brand Equity</span></h2> <br />
<p>Importance of Marketing, Brand equity is developed due to marketing activities. Brand equity helps to increase the value of the product. For effective marketed products, customers are willing to pay more price. For instance, unique product design, excellent after-sale-service and such other marketing activities enable a firm to command premium price for its brands.</p><h2><span style="color:#333;font-size:small;"> 11. Brand Image</span></h2> <br />
<p>Importance of Marketing, brand image improves marketing activities. The impression of the brand image is always remembered by the customer. Good brand image products always give an advantage to the firm in the market. For instance, powerful marketing strategies such as promotion, Publicity, Sales Promotion, Advertising, Salesmanship, etc., of the product benefits the firm to enhance its brand image in the market. Good brand image not only generates customer loyalty, but customers are also willing to pay higher price.</p><h2><span style="color:#333;font-size:small;">12. Benefits to Stakeholders</span></h2><br />
<p>Importance of Marketing, the higher returns to the firm are brought by effective marketing. The stakeholders get many advantages from higher returns such as:</p><ul><li>Salaries and other incentives / perks of the employer may rise.</li><li>Dealers may earn extra incentives due to increase in demand of the product.</li><li>Higher tax revenue may generated by the government.</li><li>Higher dividends may be given to the <a href="http://articles-junction.blogspot.com/2013/10/problems-and-indications-of.html">shareholder</a> of the company.</li><li>Distributors of this firm may generate more orders.</li><li>Increasing profit might benifite the society.</li></ul><p>Some important <strong>articles on Marketing</strong> are given below.</p><p><a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">What is Marketing? Definition, Meaning of Marketing - Diagram</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Importance of Marketing - Role, Significance of Marketing</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Functions of Marketing - Nature and Scope of Marketing</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/features-of-marketing-nature-of.html">Features of Marketing - Nature of Marketing - Diagram</a></p><br />
Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com2tag:blogger.com,1999:blog-8295104352019308349.post-6555199332247301812014-07-21T16:10:00.001-06:002014-07-22T05:15:13.389-06:00Features of Marketing - Nature of Marketing - Diagram<h2><span style="color:#333;font-size:small;">Features of Marketing</span></h2><br />
<p><strong><a href="http://articles-junction.blogspot.com/2013/08/define-oral-communication-nature-and.html">Nature</a></strong> of <a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">Marketing</a> <strong>plans</strong> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzRWMG7EXbl6ujTBd0B3DsMdFnrJNTlY3c3IcylsUgSzAph-gZfYpPgf4AqKaUROQwU7zg_hkK6KiGPaBFckV6MIFDUVysqZN1opZY51_qId8zZOMDr6r2m59AHfVZMb6GGyE_aN2pJXk/s1600/Features+of+Marketing.png" imageanchor="1" rel="lightbox-Features-of-Marketing" title="Features of Marketing"><img class="c1" ad="true" alt="Features of Marketing" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzRWMG7EXbl6ujTBd0B3DsMdFnrJNTlY3c3IcylsUgSzAph-gZfYpPgf4AqKaUROQwU7zg_hkK6KiGPaBFckV6MIFDUVysqZN1opZY51_qId8zZOMDr6r2m59AHfVZMb6GGyE_aN2pJXk/s1600/Features+of+Marketing.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 260px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>Explain</strong> the <a href="http://articles-junction.blogspot.com/2013/07/meaning-definition-nature.html">Nature</a> of Marketing <strong>channels</strong> are given below.</p><ol type="1"><li>Systematic Process</li><li>Ideas, Goods and Services</li>
<li>Target <a href="http://articles-junction.blogspot.com/2013/09/what-is-primary-market-functions-of.html">Markets</a></li><li>All Pervasive</li><li>Customer Satisfaction</li>
<li>Competitive Advantage</li><li>Corporate Image</li><li>Expansion of Business</li><li>Organizational Objectives</li><li><a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Marketing</a> <a href="http://articles-junction.blogspot.com/2013/07/need-and-characteristic-of-environment.html">Environment</a></li><li>Integrated Approach</li><li>Societal Interest</li></ol><p><strong>Salient</strong> Features of <a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Marketing</a> <strong>Services</strong> are as follows:</p><a name='more'></a><br />
<h2><span style="color:#333;font-size:small;">1. Systematic Process</span></h2> <br />
<p>Features of Marketing <strong><a href="http://articles-junction.blogspot.com/2013/10/concept-of-risk-and-return-with-diagram.html">concept</a></strong>, the marketing is systematic in <strong>nature</strong>. The main aim of <a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-importance-of.html">marketing</a> is to satisfy the needs and wants of the customers by bringing into the right products. The following is the process of marketing involves:</p><ul><li>The product is design as per customer requirements.</li><li>The right price of product is fixed.</li><li>Effective promotion strategy of the product is defined.</li><li>Distribution of the products at the right place and at the right time is planned.</li></ul><p>The marketing process is taken on to accomplish organizational objectives (profits, market share, etc.), and to generate customer satisfaction.</p><p>The marketing process is continuous in <strong><a href="http://articles-junction.blogspot.com/2013/07/explain-changing-nature-of.html">Nature</a></strong>. Firstly, it starts with the marketing research. Then after the sale of the product it comes on to customer <a href="http://articles-junction.blogspot.com/2013/07/need-importance-of-feedback-in-process.html">feedback</a> and later on sales and services of the product.</p><h2><span style="color:#333;font-size:small;">2. Ideas, Goods and Services</span></h2><br />
<p>Features of Marketing <strong>services</strong>, marketing sells new ideas and it also sells goods and services. The marketing process involved following things:</p><ul><li>The perceptible goods like FMCG products and consumer durables are dispensed and plan by the marketers.</li><li>Airlines, hotels, <a href="http://articles-junction.blogspot.com/2014/06/what-is-insurance-meaning-definition-of.html">insurance</a>, banks, etc. are sold by the marketers.</li>
<li>Furthermore, ideas are marketed by social and Govt. organizations, which includes campaigns relating to anti-drugs, AIDS awareness, anti-corruption, etc.</li></ul><p>In fact, every market offering includes a basic idea. A marketer of a face cream sells the idea of a beautiful person and that of a soft drink sells the idea of refreshment.</p><h2><span style="color:#333;font-size:small;">3. Target Markets</span></h2><br />
<p>Features of Marketing, marketing is bothered with target <a href="http://articles-junction.blogspot.com/2013/09/what-is-stock-market-features-of-stock.html">markets</a>. No one can sell everything to anyone. Therefore, the marketer should be conclusive in selecting the targeted clients or buyers. A marketer needs to design goods and services to a particular target segment or market.</p><p><strong>Examples</strong> of features of marketing are given below.</p><p>A marketer cannot design and sell a particular model of a car to all prospective buyers. He has to design distinct models to different segments of the market depending upon their income, status, preferences, etc.</p><h2><span style="color:#333;font-size:small;">4. All Pervasive</span></h2><br />
<p>Features of Marketing, the marketing process is not only applicable to business organization but as well as to non-business organizations.</p><p><strong>Examples</strong> of features of marketing are given below.</p><p>An educational institution may adopt marketing approach to:</p><ul><li>Suggest the right courses to the students (product).</li>
<li>Charge the appropriate fees to the students (price).</li>
<li>Promotion of courses to the students (if so required).</li>
<li>Provide the courses to the student at the right time and place.</li></ul><h2><span style="color:#333;font-size:small;">5. Customer Satisfaction</span></h2><br />
<p>Features of Marketing, these days marketer plans to target on customer satisfaction. It has an association between product performance and customer anticipation.</p><ul><li>The consumers gets pleased when product performance matches with customer expectation.</li><li>When product performance is below customer expectation, the customers are dissatisfied.</li><li>When product performance exceeds customer expectation, the customers are delighted.</li><li>When product performance exceeds very much more than expectation, the customers get astonished.</li></ul><p>These days the customers are given excited offer and value-added services. The main focus of today's marketers is customer satisfaction. Customer value can be enhanced by providing additional facilities at little or no extra cost, such as extension in after-sale-service and warranties, free delivery and installation, etc. If possible, marketers need to astonish customers by providing services, which are very much more than their expectations.</p><p><strong>Examples</strong> of features of marketing are given below.</p><p>Federal Express has created customer value by: It allows customers to track packages through the company's web site. By connecting to the FedEx site and by entering the airway bill number, customers can locate a package in transit. After the package has been delivered, they can even identify the name of the person who signed for it. This service is free of charge. This facility has enhanced the customer value and loyalty.</p><h2><span style="color:#333;font-size:small;">6. Competitive Advantage</span></h2><br />
<p>Features of Marketing, because of competitive market the strategies should be perfect. The marketers should find unique ideas and innovation to compete in today's market. The marketers should be proactive and should have decision-making skills. They should come with:</p><ul><li>New innovative designs or models.</li><li>Advanced Creative promotion plans.</li><li>Effective customer relationship techniques, etc.</li></ul><p>The pro-active decisions give the competitive advantage to professional marketers.</p><h2><span style="color:#333;font-size:small;">7. Corporate Image</span></h2><br />
<p>Features of Marketing, an effective marketing strategy ensures the development of the firm, and it also improves its corporate image in the society. Because of effective marketing strategy, the firm's turnover in terms of profit, share and sales in the market improves. Therefore, corporate image improves in the minds of Employees, Customers, Dealers, Suppliers, <a href="http://articles-junction.blogspot.com/2013/10/shareholders-wealth-maximization.html">Shareholders</a> and other stakeholders.</p><p>A good corporate image in the minds of stakeholders helps a firm to expand and grow. For instance, firms that have good corporate image:</p><ul><li>Develop trust and confidence of the customers.</li><li>Get support from the <a href="http://articles-junction.blogspot.com/2013/10/problems-and-indications-of.html">Shareholders</a> and <a href="http://articles-junction.blogspot.com/2013/09/indian-financial-system-and.html">financial institution</a>.</li><li>Get cooperation from dealers and suppliers, etc.</li></ul><h2><span style="color:#333;font-size:small;">8. Expansion of Business</span></h2><br />
<p>Features of Marketing, marketing facilitates expansion of the firm. Due to effective marketing, the performance of the organization improves in terms of sales, profits and market share. Therefore, a firm may adopt expansion strategy. For expansion, the firm undertakes various activities such as:</p><ul><li><strong>Market Penetration</strong>: increase in marketing activities in the existing market.</li><li><strong>Market Development</strong>: entry into brand new marketplaces.</li><li><strong>Product Development</strong>: development of new products for existing / modern <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">markets</a>.</li></ul><h2><span style="color:#333;font-size:small;">9. Organizational Objectives</span></h2><br />
<p>Features of Marketing, the marketing objectives of the firm are achieved due to efficient marketing.</p><p>The marketing objectives are as follows:</p><ul><li>Increase in the profits of the firm by leap and bounds.</li><li>Increase in the market stake, improves corporate image.</li><li>It enhanced the brand loyalty of the customer and also improves the brand image of the firm.</li></ul><h2><span style="color:#333;font-size:small;">10. Marketing Environment</span></h2><br />
<p>Features of Marketing, the marketing is affected by number of factors such as:</p><ul><li>Government policies,</li><li>Economic conditions,</li>
<li>Customer preferences,</li><li>International environment,</li><li>Competitors strategies,</li><li>Financial climate, etc.</li></ul><p>Marketers should actively scan the environment. For instance, a marketer must analyze the <a href="http://articles-junction.blogspot.com/2014/07/4-ps-of-marketing-mix-elements-of.html">marketing-mix</a> adopted by the competitors. Accordingly, he has to design products that offer a differential advantage to the consumers, which may bring higher returns to the firm.</p><h2><span style="color:#333;font-size:small;">11. Integrated Approach</span></h2><br />
<p>Features of Marketing, marketing needs to integrate with the other functional areas of the organization. There is a need for integration of various departments such as finance, production, human resources, etc. All functional areas should interact and interlink to achieve the firm's overall objectives.</p><p>For instance, a decision to increase advertising would require support from the finance department. And a decision to introduce a new model requires active coordination between the production and marketing department. And a decision to introduce a new model requires active coordination between the production and marketing department.</p><h2><span style="color:#333;font-size:small;">12. Societal Interest</span></h2><br />
<p>Features of Marketing, because of advanced marketing social interest of the society is maintained. There should be always balance between public interest and customer's satisfaction by the marketers.</p><p>For instance, professional marketers undertake research and development to develop products, which are eco-friendly and also generates customer satisfaction. And at the same time brings higher profits to the organization.</p><p><strong>Examples</strong> of features of marketing are given below.</p><p>Such products include fuel efficient cars, compact air conditioners, etc.</p><p>Some important <strong>articles on Marketing</strong> are given below.</p><p><a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">What is Marketing? Definition, Meaning of Marketing - Diagram</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Importance of Marketing - Role, Significance of Marketing</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Functions of Marketing - Nature and Scope of Marketing</a></p><br />
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Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com3tag:blogger.com,1999:blog-8295104352019308349.post-17205737830982230982014-07-15T12:02:00.001-06:002014-07-15T12:47:11.586-06:004 P's of Marketing Mix - Elements of Marketing Mix - Definition<h2><span style="color:#333;font-size:small;">What is Marketing Mix?</span></h2><br />
<p><strong>What is <a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">Marketing</a> Mix?</strong> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYzt6tO0I1Je7kF3xLJz2uQjJhPtFT0QpYr9a5PwAb3o50Qeu11-0pX3QFsdB8NtfcJydN9AL8PNIM1uFKwHfE4P8IwswLLwQqUOTG1_ghQFOI5N_ipYhI8uukWy6HrUwAStihkz193I4/s1600/What+is+Marketing+Mix.png" imageanchor="1" rel="lightbox-4-P-s-of-Marketing-Mix" title="What is Marketing Mix?"><img class="c1" ad="true" alt="What is Marketing Mix?" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYzt6tO0I1Je7kF3xLJz2uQjJhPtFT0QpYr9a5PwAb3o50Qeu11-0pX3QFsdB8NtfcJydN9AL8PNIM1uFKwHfE4P8IwswLLwQqUOTG1_ghQFOI5N_ipYhI8uukWy6HrUwAStihkz193I4/s1600/What+is+Marketing+Mix.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 385px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>What is 4 P's of <a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Marketing</a> Mix?</strong> are follows:</p><p><a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Marketing</a> mix is an <a href="http://articles-junction.blogspot.com/2013/07/importance-of-communication-in.html">important</a> <strong><a href="http://articles-junction.blogspot.com/2013/10/concept-of-risk-and-return-with-diagram.html">concept</a></strong> of marketing <a href="http://articles-junction.blogspot.com/2013/08/need-importance-significance-role-of.html">management</a>. The main aim of every business organization is to earn and maximize its profits. For doing so, they concentrate on 4 factors, i.e. Product, Place, Promotion and Price, known as a marketing mix. They are also known as four 'Ps' of the marketing mix.</p><a name='more'></a><br />
<p>Marketing mix is an <a href="http://articles-junction.blogspot.com/2013/07/define-persuasion-importance-of.html">important</a> element of marketing <a href="http://articles-junction.blogspot.com/2013/10/functions-of-financial-management.html">management</a>. Production takes place in prediction of demand. Customer's needs and requirements are the priority of every organization. In order to increase sales of a product and satisfy the wants of customers, marketing mix of an organization is divided into 4 elements such as four P's.</p><p><strong>Four</strong> Elements of Marketing Mix are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsa1gY2nunWL2sNdqFuUOkjZwvvdz2tr1v9TSl7uhWrFGsG5JETMnOyZs0mEcUeo7iPYvoK1zhutrRdCXFQYTkT-Dc3StO2zcpl9n-Yhan4m5IXGq76jBEC3opBo5kBUrBOqoFipoLZ80/s1600/Four+Elements+of+Marketing+Mix.png" imageanchor="1" rel="lightbox-4-P-s-of-Marketing-Mix" title="Four Elements of Marketing Mix"><img class="c1" ad="true" alt="Four Elements of Marketing Mix" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsa1gY2nunWL2sNdqFuUOkjZwvvdz2tr1v9TSl7uhWrFGsG5JETMnOyZs0mEcUeo7iPYvoK1zhutrRdCXFQYTkT-Dc3StO2zcpl9n-Yhan4m5IXGq76jBEC3opBo5kBUrBOqoFipoLZ80/s1600/Four+Elements+of+Marketing+Mix.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 310px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Marketing Mix <strong>Modeling</strong>, <strong>Strategy</strong> are given below.</p><ul><li>Product Mix</li><li>Place of Physical Distribution Mix</li><li>Promotion Mix</li><li>Price Mix.</li></ul><h2><span style="color:#333;font-size:small;">Definition of Marketing Mix</span></h2><br />
<p><strong>Definition of Marketing Mix</strong> by Philip Kotler are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi43FeEFl_YqQ0kzWWD7ExVQ9RZkoxRsejMq6o35dVn3oBkws7VvBvthaEdbMMDEIsH2EonYaGo6d3xzMJSWq6wcpXuJSiDCvDOjcMgLwCll2gP5IVYnBnXijVrtSnSq31QRMKjfYBwS-Y/s1600/Definition+of+Marketing+Mix+by+Philip+Kotler.png" imageanchor="1" rel="lightbox-4-P-s-of-Marketing-Mix" title="Definition of Marketing Mix"><img class="c1" ad="true" alt="Definition of Marketing Mix" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi43FeEFl_YqQ0kzWWD7ExVQ9RZkoxRsejMq6o35dVn3oBkws7VvBvthaEdbMMDEIsH2EonYaGo6d3xzMJSWq6wcpXuJSiDCvDOjcMgLwCll2gP5IVYnBnXijVrtSnSq31QRMKjfYBwS-Y/s1600/Definition+of+Marketing+Mix+by+Philip+Kotler.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 302px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Marketing Mix Definition are given below.</p><p>According to <strong>Philip Kotler</strong> Marketing mix <strong>defined</strong> as:</p><blockquote>“a set of controllable variables and their levels that the firm uses to influence the target market.”</blockquote><h2><span style="color:#333;font-size:small;">4 P's of Marketing Mix - Elements of Marketing Mix</span></h2><br />
<p><strong><a href="http://articles-junction.blogspot.com/2013/09/what-is-stock-market-features-of-stock.html">Features</a></strong>, <strong><a href="http://articles-junction.blogspot.com/2013/09/what-is-primary-market-functions-of.html">Functions</a></strong> of marketing mix are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7josSE_hTbmmacKAxTqbgiXKV5Qe2_NnxmUZ0pGogmTB3eoIlaBlC8m8tiaNH9pTOEYEjkxRi5TJuLvgQHRb34PjBnElj6oAQ9maUMOPgRv6CYjy7jpXogZTxl24RnRAdsIHQYl64cWA/s1600/4+Ps+of+Marketing+Mix.png" imageanchor="1" rel="lightbox-4-P-s-of-Marketing-Mix" title="4 P's of Marketing Mix"><img class="c1" ad="true" alt="4 P's of Marketing Mix" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7josSE_hTbmmacKAxTqbgiXKV5Qe2_NnxmUZ0pGogmTB3eoIlaBlC8m8tiaNH9pTOEYEjkxRi5TJuLvgQHRb34PjBnElj6oAQ9maUMOPgRv6CYjy7jpXogZTxl24RnRAdsIHQYl64cWA/s1600/4+Ps+of+Marketing+Mix.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 275px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>Various</strong>, <strong>Basic</strong>, <strong>Theory</strong>, <strong>Components</strong>, <strong>Key</strong> elements of Marketing Mix 4 p's are given below.</p><ol type="1"><li>Product</li><li>Price</li><li>Promotion</li><li>Place Distribution</li></ol><p><strong>Importance</strong> of 4 p's of marketing mix are follows:</p><h2><span style="color:#333;font-size:small;">1. Product</span></h2><br />
<p>4 P's of marketing mix, product is the <strong>key</strong> element of the marketing mix because without the product, there is no marketing. A product has many utilities and many features supplementing it. A product satisfies the <a href="http://articles-junction.blogspot.com/2013/06/what-are-rights-of-consumer-as-per.html">consumers</a> wants or needs. A product which provides satisfaction is always purchased by a customer. So the appropriate product is produced, marketed and consumed.</p><h2><span style="color:#333;font-size:small;">2. Price</span></h2><br />
<p>4 P's of marketing mix, pricing also is an <strong><a href="http://articles-junction.blogspot.com/2013/08/need-importance-significance-role-of.html">important</a></strong> element of marketing mix. Price fixation of a product is a difficult task. Price is the measure of material value and gives effect to demand.</p><p>Price brings an equilibrium between supply and demand of a product in the market. Pricing decisions are the more significant decision because they are the very basis of survival and growth of organization.</p><h2><span style="color:#333;font-size:small;">3. Promotion</span></h2><br />
<p>4 P's of marketing mix, promotion is the <strong>main</strong> element of marketing mix. It is an <a href="http://articles-junction.blogspot.com/2013/06/what-is-need-and-importance-of-consumer.html">important</a> activity in marketing to lubricate the marketing efforts. It is immensely specialized marketing function. Promotion includes advertising, sales, production, publicity, personal marketing, public relations, etc.</p><h2><span style="color:#333;font-size:small;">4. Place Distribution</span></h2><br />
<p>4 P's of marketing mix, place distribution is the element of marketing mix. Marketing or distribution of goods or products to the ultimate user is the main object of the process of marketing. When a product is being made, the producer has to determine the <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">methods</a> and routes to distribute the product to the user.</p><p>Distribution creates place, time and ownership utilities to the product. The decision of selecting proper marketing channels is the <a href="http://articles-junction.blogspot.com/2013/07/need-importance-of-feedback-in-process.html">important</a> process in the marketing, as it affects other decisions of marketing.</p><p>Some Important Articles on Marketing are given below.</p><p><a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">What is Marketing? Definition, Meaning of Marketing - Diagram</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Importance of Marketing - Role, Significance of Marketing</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Functions of Marketing - Nature and Scope of Marketing</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com4tag:blogger.com,1999:blog-8295104352019308349.post-3349885247620319702014-07-15T11:57:00.002-06:002014-07-15T12:38:33.494-06:00Functions of Marketing - Nature and Scope of Marketing<h2><span style="color:#333;font-size:small;">Functions of Marketing</span></h2><br />
<p><strong>Nature</strong> of <a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">Marketing</a> is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnDw7DgbrivsCl7JHkmlDPPaHRNFdyF1b_1Hzx_aw17GJyshUQvzRm-9NzFTwlEWlz_9-4FG-fNjaV-rqEaTupB7eC__znwS3e2HbPSyMIapznAx-RwQvjj9DmoiQCwmVYcjubp09d3xk/s1600/Functions+of+Marketing.png" imageanchor="1" rel="lightbox-Functions-of-Marketing" title="Functions of Marketing"><img class="c1" ad="true" alt="Functions of Marketing" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjnDw7DgbrivsCl7JHkmlDPPaHRNFdyF1b_1Hzx_aw17GJyshUQvzRm-9NzFTwlEWlz_9-4FG-fNjaV-rqEaTupB7eC__znwS3e2HbPSyMIapznAx-RwQvjj9DmoiQCwmVYcjubp09d3xk/s1600/Functions+of+Marketing.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 460px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>Scope</strong> of <a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Marketing</a> are given below.</p><ol type="1"><li>Buying</li><li>Selling</li><li>Assembling</li>
<li>Standardization</li><li>Grading</li><li>Branding</li><li>Transportation</li>
<li>Warehousing</li><li><a href="http://articles-junction.blogspot.com/2013/09/what-is-corporate-finance-fundamentals.html">Financing</a></li><li>Market Research</li></ol><a name='more'></a><p><a href="http://articles-junction.blogspot.com/2013/10/functions-of-financial-management.html">Functions</a> of <a href="http://articles-junction.blogspot.com/2014/07/4-ps-of-marketing-mix-elements-of.html">marketing</a> are as follows:</p><h2><span style="color:#333;font-size:small;">1. Buying</span></h2><br />
<p>Function of marketing buying is the first step in the marketing process. Proper decision about what to buy, how to buy, where to buy and at what price to buy, must be taken after adequate and appropriate research. Every trading concern <a href="http://articles-junction.blogspot.com/2013/06/what-is-need-and-importance-of-consumer.html">needs</a> efficient and economical buying to get adequate profit.</p><h2><span style="color:#333;font-size:small;">2. Selling</span></h2><br />
<p>Functions of marketing selling involve a transfer of title of goods to the buyer. The <a href="http://articles-junction.blogspot.com/2013/07/eight-main-factors-influencing-location.html">main</a> aim of sale of goods is to earn the profit. The selling function creates demand for the products and involves creation and expansion of markets for the goods produced in anticipation of demand. Thus selling increases profit of the business and production of goods and services available to the <a href="http://articles-junction.blogspot.com/2013/06/various-problems-faced-by-consumers-in.html">consumers</a> in the society.</p><h2><span style="color:#333;font-size:small;">3. Assembling</span></h2><br />
<p>Functions of marketing assembling means collecting goods of similar nature from <a href="http://articles-junction.blogspot.com/2013/08/different-methods-of-communication-with.html">different</a> sources of supply, at one convenient central place for further processing or distribution. Assembling is mostly done in case of agricultural goods. When goods are assembled at one place, the cost of warehousing, standardizing, grading, packaging, labeling of goods is much lesser. Demand for agricultural goods is perennial (through the year) and thus supply is maintained throughout the year.</p><h2><span style="color:#333;font-size:small;">4. Standardization</span></h2><br />
<p>Functions of marketing, A standard is a norm or criteria given to a product. It is a mental process of fix standards for a given product like size, weight, color, strength, texture, purity, durability, performance, etc. A standard reflects the quality of the product and helps quality control. It creates trust and confidence in the minds of customer. Organic certification for agricultural goods and Fair-trade certification mark for manufactured and industrials goods. Standardization is very essential for branded goods.</p><h2><span style="color:#333;font-size:small;">5. Grading</span></h2><br />
<p>Functions of marketing, grading refer to classification of products in <a href="http://articles-junction.blogspot.com/2013/08/different-types-forms-of-nonverbal.html">different</a> categories on the basis certain fixed standard. Grading is a physical process. It follows standardization. Each product is grouped or graded. It reflects a certain level of quality.</p><h2><span style="color:#333;font-size:small;">6. Branding</span></h2> <br />
<p>Functions of marketing, branding means giving a name, mark, symbol, color or a combination of these to a product. An identity of a product is created, and a customer can distinguish the products from those of competitor's products. Brands give an assurance of a certain level of quality and performance of the product. Branding is a tool used to survive, face and fight competitions.</p><h2><span style="color:#333;font-size:small;">7. Transportation</span></h2> <br />
<p>Functions of marketing, transportation refers to movement of goods and services from the place of production to the place of <a href="http://articles-junction.blogspot.com/2013/07/green-consumption-definition-green.html">consumption</a>. It removes the problem of distance and helps in continuous production of goods, on a large scale. It helps in expanding markets and maintains price stability and generates employment. It also helps in balanced development of a country.</p><h2><span style="color:#333;font-size:small;">8. Warehousing</span></h2><br />
<p>Functions of marketing, warehousing creates time utility. Goods have to be stored after they are produced until they are consumed. At present, the goods are produced in anticipation of demand and so the producers store the goods systematically in warehouses until the time of sale. Storage helps to keep the steady flow of goods throughout the year and also maintain price stability. The producer can concentrate on production on a large-scale and also benefit from the economics of scale.</p><h2><span style="color:#333;font-size:small;">9. Financing</span></h2><br />
<p>Functions of marketing, <a href="http://articles-junction.blogspot.com/2013/09/indian-financial-system-and.html">finance</a> is the life blood of business, and <a href="http://articles-junction.blogspot.com/2013/09/what-is-corporate-finance-fundamentals.html">finance</a> is very essential for the smooth conduct of marketing function. At every stage, it is very important to have adequate and cheap <a href="http://articles-junction.blogspot.com/2013/10/what-is-financial-management-objective.html">finance</a>. <a href="http://articles-junction.blogspot.com/2013/09/indian-financial-system-and.html">Finance</a> is made available through loans and advances from banks and financial institutions.</p><h2><span style="color:#333;font-size:small;">10. Market Research</span></h2><br />
<p>Functions of marketing, modern marketing requires a lot of information accurately, adequately and promptly to solve many marketing <a href="http://articles-junction.blogspot.com/2013/10/problems-and-indications-of.html">problems</a>. The study of the marketing <a href="http://articles-junction.blogspot.com/2013/07/ten-major-environmental-problems.html">problems</a> enables the seller to know when to sell, where to sell, what price to sell, who are the competitors, etc. The market information helps the seller to know the likes, dislikes, taste, and preference of the customers.</p> <br />
<p>Some Important Articles on Marketing are given below.</p><p><a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">What is Marketing? Definition, Meaning of Marketing - Diagram</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Importance of Marketing - Role, Significance of Marketing</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/4-ps-of-marketing-mix-elements-of.html">4 P's of Marketing Mix - Elements of Marketing Mix - Definition</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com1tag:blogger.com,1999:blog-8295104352019308349.post-14248455659284180832014-07-15T11:55:00.001-06:002014-07-15T12:26:32.983-06:00Importance of Marketing - Role, Significance of Marketing <h2><span style="color:#333;font-size:small;">Importance of Marketing</span></h2><br />
<p><strong><a href="http://articles-junction.blogspot.com/2013/09/what-is-corporate-finance-fundamentals.html">Features</a></strong> of <a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">Marketing</a> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBocHUteIOiZ5yKYZPp7TOOkWy605PFdmh1CQvgLUEsCXixl-xDRSXmq8qoq9WhOeTkifpo9iNdIn6wtmWJ56IZCJNw25weOUYrqQJJUJ4U3uQ3Rmj20qdMNyruPMChdf4WzOjD2qsv_4/s1600/Importance+of+Marketing.png" imageanchor="1" rel="lightbox-Importance-of-Marketing" title="Importance of Marketing"><img class="c1" ad="true" alt="Importance of Marketing" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBocHUteIOiZ5yKYZPp7TOOkWy605PFdmh1CQvgLUEsCXixl-xDRSXmq8qoq9WhOeTkifpo9iNdIn6wtmWJ56IZCJNw25weOUYrqQJJUJ4U3uQ3Rmj20qdMNyruPMChdf4WzOjD2qsv_4/s1600/Importance+of+Marketing.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 267px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong><a href="http://articles-junction.blogspot.com/2013/09/functions-of-stock-exchange-role-of.html">Role</a></strong>, <strong><a href="http://articles-junction.blogspot.com/2013/08/need-importance-significance-role-of.html">Significance</a></strong> are given below.</p><p><strong><a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Marketing</a> and society / <a href="http://articles-junction.blogspot.com/2013/06/various-problems-faced-by-consumers-in.html">consumers</a></strong></p><ol type="1"><li>Increase in the standard of living</li><li>Employment opportunities</li><li>Economic stability</li>
<li>Creates utility</li><li>Satisfaction of human wants</li></ol><a name='more'></a><br />
<p><strong><a href="http://articles-junction.blogspot.com/2014/07/4-ps-of-marketing-mix-elements-of.html">Marketing</a> and <a href="http://articles-junction.blogspot.com/2013/07/advantages-and-disadvantages-of.html">organizations</a></strong></p><ol type="1"><li>Gain income</li><li>Marketing information</li><li>Source and channel of new ideas</li><li>Decision making</li></ol><p><a href="http://articles-junction.blogspot.com/2013/07/need-importance-of-feedback-in-process.html">Importance</a> of Marketing are follows:</p><p>Marketing and society / <a href="http://articles-junction.blogspot.com/2013/06/what-is-need-and-importance-of-consumer.html">consumers</a></p><h2><span style="color:#333;font-size:small;">1. Increase in the standard of living</span></h2><br />
<p>Importance of marketing, modern society is divided into three classes (1)Rich Class (2) Middle Class and (3) Poor class. Standard of living of society is mainly depends on purchasing power of these classes. Better standard of living needs, fulfillment of various wants, which is possible with the help of marketing. Hence, it can be stated that standard of living is a gift of marketing. In simple words, marketing improves the standard of living of society.</p><h2><span style="color:#333;font-size:small;">2. Employment opportunities</span></h2><br />
<p>Importance of marketing, marketing is a prominent instrument of employment. These process includes various activities such as buying, selling warehousing, transportation, grading, finance, risk undertaking, etc., which provides employment to the number of persons. Thus marketing generates sufficient scope for employment to thousands of people and improve their income levels.</p><h2><span style="color:#333;font-size:small;">3. Economic stability</span></h2><br />
<p>Importance of marketing, marketing plays a vital role, in the economic stability of a country. Economic growth depends on economic stability. Economic stability depends on balance between production and <a href="http://articles-junction.blogspot.com/2013/07/green-consumption-definition-green.html">consumption</a>, i.e. demand and supply. To maintain balance in production and <a href="http://articles-junction.blogspot.com/2013/07/how-to-start-green-consumption-program.html">consumption</a> marketing is necessary. Marketing maintains this balance and stabilizes the economy.</p><h2><span style="color:#333;font-size:small;">4. Creates utility</span></h2><br />
<p>Importance of marketing, marketing is an <a href="http://articles-junction.blogspot.com/2013/07/what-are-economic-activities.html">economic activity</a>. It creates ownership, place and time utility in goods and services. Marketing creates demand. Various activities of marketing create utility. E.g. <a href="http://articles-junction.blogspot.com/2013/09/what-is-stock-market-features-of-stock.html">Exchange</a> of goods offered,s ownership, time utility and place utility is created due to warehousing and transportation. Thus, marketing provides value to the goods and services. It also provides goods at the right time at right place and at reasonable price.</p><h2><span style="color:#333;font-size:small;">5. Satisfaction of human wants</span></h2> <br />
<p>Importance of marketing, marketing plays a significant role in the distribution of goods and services to the consumer satisfaction of their wants. It is the activity which transfers goods and service from the place of consumption to satisfy the needs of society. Thus, marketing has great importance in providing goods necessary to fulfill human needs.</p><p>Marketing and organizations</p><h2><span style="color:#333;font-size:small;">1. Gain income</span></h2><br />
<p>Importance of marketing, organizational profits depends on its income, while the future of organization depends on its profit. Importance of marketing, organizational profits based on its income, while the future of organization depends on its profit. Organizations can earn the profit through various activities. Marketing provides 'Market' to goods and services. The function of marketing develops, wants and fulfils the same. Organizations can spend on production and marketing through the income earned.</p><h2><span style="color:#333;font-size:small;">2. Marketing information</span></h2><br />
<p>Importance of marketing, modern economics is dynamic in <a href="http://articles-junction.blogspot.com/2013/08/define-oral-communication-nature-and.html">nature</a>. There are tremendous and rapid changes in likes, dislikes, price and demand. An entrepreneur has to take decisions according to changed <a href="http://articles-junction.blogspot.com/2013/07/ten-major-environmental-problems.html">environment</a>. Entrepreneurs have to search new products, new customers, new market, new process of production and so on. Producer can collect all this information from various marketing sources and can introduce changes in their production, and can survive in the competition.</p><h2><span style="color:#333;font-size:small;">3. Source and channel of new ideas</span></h2><br />
<p>Importance of marketing, Marketing is a significant and complex aspect of the modern dynamic economy. Dynamic changes constantly occur in the field of marketing, which is very essential for providing sources and channels of new ideas and guiding policies.</p><h2><span style="color:#333;font-size:small;">4. Decision making</span></h2> <br />
<p>Importance of marketing, Producers produce goods and services. He has to take major decision like what to produce? Where to produce? How much to produce? All these decisions directly affect the profit. These decisions are major and hence are difficult to take. Marketing helps producers to take the proper decisions, at the right time. Hence, “Success” of business and proper decisions are interdependent, which is possible due to marketing.</p><br />
<p>Some Important Articles on Marketing are given below.</p><br />
<p><a href="http://articles-junction.blogspot.com/2014/07/what-is-marketing-definition-meaning-of.html">What is Marketing? Definition, Meaning of Marketing - Diagram</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Functions of Marketing - Nature and Scope of Marketing</a></p><br />
<p><a href="http://articles-junction.blogspot.com/2014/07/4-ps-of-marketing-mix-elements-of.html">4 P's of Marketing Mix - Elements of Marketing Mix - Definition</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-3094398041508006162014-07-15T11:52:00.000-06:002014-07-15T12:14:27.846-06:00What is Marketing? Definition, Meaning of Marketing - Diagram<h2><span style="color:#333;font-size:small;">What is Marketing?</span></h2><br />
<p><strong>Concept</strong> of <a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Marketing</a> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg06cJyHGw-1kAlUcy3i4pYkQ7GiLXjliSWgWQ6RGgkhfYCy86k_91RY6MMongypfdokljKp3qgsaGBqWvh5NtYtQVI2i_gaB3mhqDPq2kjzaEZrs2A0YOFbPliZRo0_52Eae1NebIJzUs/s1600/What+is+Marketing.png" imageanchor="1" rel="lightbox-What-is-Marketing" title="What is Marketing?"><img class="c1" ad="true" alt="What is Marketing?" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg06cJyHGw-1kAlUcy3i4pYkQ7GiLXjliSWgWQ6RGgkhfYCy86k_91RY6MMongypfdokljKp3qgsaGBqWvh5NtYtQVI2i_gaB3mhqDPq2kjzaEZrs2A0YOFbPliZRo0_52Eae1NebIJzUs/s1600/What+is+Marketing.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 387px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>What is <a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Marketing</a>? </strong>is given below.</p><p>Use of labour intensive technique was the main <a href="http://articles-junction.blogspot.com/2013/09/what-is-stock-market-features-of-stock.html">feature</a> of production before Industrial Revolution. Production was on the small scale, before Industrial Revolution. Hence exchange of goods, purchasing and selling was very simple. However, after Industrial Revolution, sudden changes took place in production technique. Use of Machinery in place of Manpower was one of the major changes. Production was started in anticipation of demand on the large scale.</p><a name='more'></a><p>The customers and producers were scattered over, due to which distribution of goods became the <a href="http://articles-junction.blogspot.com/2013/07/ten-major-environmental-problems.html">problem</a>. It is necessary to maintain the constant endless flow of produced goods from producers to <a href="http://articles-junction.blogspot.com/2013/06/who-is-consumer-definition-importance.html">consumers</a>. Therefore, there exists a channel of distribution to bridge the gap between a producer at one end and customer to the other end. This distribution chain consists of retailer, Wholesaler, Salesmen, middlemen and advertising agent, etc. All of them are playing an equal and <a href="http://articles-junction.blogspot.com/2013/07/importance-of-communication-in.html">important</a> role for which they are paid properly.</p><p>In simple words one can state that <a href="http://articles-junction.blogspot.com/2014/07/4-ps-of-marketing-mix-elements-of.html">Marketing</a> includes all these activities, efforts, which are undertaken to provide goods from the place of producer to end customers. It can be stated therefore, that marketing came into existence due to industrial Revolution. In other words, Industrial Revolution has given birth to marketing.</p><h2><span style="color:#333;font-size:small;">Meaning of Marketing</span></h2><br />
<p>Meaning of Marketing are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHquJxlmZPdTAuhR8IMcYhMayEDh71263Hi3RGp4yQIRTt6oe5jWAomWxnu1HDxD6as-B8IVv4K7xowT6SWr3_8qFY5W1uvCj2Y9vRVnoAn-U-BaE8dwyYInj41bUhfEAf8q3IvkjRW8g/s1600/Meaning+of+Marketing.png" imageanchor="1" rel="lightbox-What-is-Marketing" title="Meaning of Marketing"><img class="c1" ad="true" alt=Meaning of Marketing" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHquJxlmZPdTAuhR8IMcYhMayEDh71263Hi3RGp4yQIRTt6oe5jWAomWxnu1HDxD6as-B8IVv4K7xowT6SWr3_8qFY5W1uvCj2Y9vRVnoAn-U-BaE8dwyYInj41bUhfEAf8q3IvkjRW8g/s1600/Meaning+of+Marketing.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 241px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>Meaning of Marketing</strong> is given below.</p><p>Market is a place where sellers and buyers come together to enter into buying and selling transaction.</p><p>Marketing is a concept compared to market. It is an organized trading process. It includes sales and various activities for <a href="http://articles-junction.blogspot.com/2013/09/functions-of-stock-exchange-role-of.html">exchange</a> of goods and services.</p><h2><span style="color:#333;font-size:small;">Definition of Marketing</span></h2><br />
<p>According to the <strong>American Marketing Association</strong> definition of marketing follows:</p><blockquote>“Performing the business activities that direct the flow of goods and services from producer to <a href="http://articles-junction.blogspot.com/2013/06/various-problems-faced-by-consumers-in.html">consumers</a> or users.”</blockquote><p>According to <strong>Paul Mazur marketing defines</strong> as:</p><blockquote>“The creation and delivery of a standard of living to society.”</blockquote><p>According to <strong>Philip Kotler marketing defines</strong> as:</p><blockquote>“The set of human activities directed as facilitating and consummating <a href="http://articles-junction.blogspot.com/2013/09/what-is-stock-market-features-of-stock.html">exchanges</a> , the essence of marketing is an exchange of products the transaction is to satisfy human needs. All business activities helping and promoting the exchange <a href="http://articles-junction.blogspot.com/2013/09/functions-of-financial-system-functions.html">functions</a> are included in marketing.”</blockquote><p>Some Important Articles on Marketing are given below.</p><p><a href="http://articles-junction.blogspot.com/2014/07/importance-of-marketing-role.html">Importance of Marketing - Role, Significance of Marketing</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/functions-of-marketing-nature-and-scope.html">Functions of Marketing - Nature and Scope of Marketing</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/4-ps-of-marketing-mix-elements-of.html">4 P's of Marketing Mix - Elements of Marketing Mix - Definition</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-12393958481592949682014-07-08T05:11:00.000-06:002014-07-08T14:06:30.167-06:00Types of Marine Insurance Policies - Importance, Conditions of Marine Insurance policies<h2><span style="color:#333;font-size:small;">Meaning of Marine Insurance</span></h2><br />
<p><strong>What</strong> is Marine Insurance? <strong>Define</strong> Marine Insurance is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaDKcV1oVxAljYG1LxbKAJyj5SONS6_Sb-3dTQdlIF4FwNleqTeBjG5o8FWCiTTdTyReobR6vRhkeuCDz9yEmoJyIyl8E0fL662tfUv3i9ZZtGF2jRUodaASWhDIwrNEy8zFPVuXUU55g/s1600/Meaning+of+Marine+Insurance.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Types of Marine Insurance Policies"><img class="c1" ad="true" alt="Types of Marine Insurance Policies" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiaDKcV1oVxAljYG1LxbKAJyj5SONS6_Sb-3dTQdlIF4FwNleqTeBjG5o8FWCiTTdTyReobR6vRhkeuCDz9yEmoJyIyl8E0fL662tfUv3i9ZZtGF2jRUodaASWhDIwrNEy8zFPVuXUU55g/s1600/Meaning+of+Marine+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 357px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Marine insurance is the oldest form of insurance. It may be called as an origin of insurance <a href="http://articles-junction.blogspot.com/2013/07/future-of-green-business-motivations.html">business</a>. Marine <a href="http://articles-junction.blogspot.com/2014/06/what-is-insurance-meaning-definition-of.html">insurance</a> is a contract of indemnity against the losses of account of perils of sea.</p><p>Marine <a href="http://articles-junction.blogspot.com/2014/07/principles-of-insurance-basic.html">Insurance</a> is a contract between the marine insurance company and the insured or the shippers under which the <a href="http://articles-junction.blogspot.com/2014/07/types-of-life-insurance-policies-life.html">insurance</a> company undertakes to compensate the losses to the ship, the cargo or the freight due to particular marine peril, during sailing in exchange of a consideration of a certain amount of money (premium).</p><a name='more'></a><h2><span style="color:#333;font-size:small;">Definition of Marine Insurance</span></h2><br />
<p><strong>Definition</strong> of Marine <a href="http://articles-junction.blogspot.com/2014/07/types-of-fire-insurance-polices-meaning.html">Insurance</a> is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizX02Vk3GsKhTaZ4jsb77AwE3JgYbtD-f7EVVr2W7iDhuw7QugHOAKmjdLLsKj0N0zIQVhP3IUftkqV4AjuR_sFbbfTWlXZUQWbXkxFb0re8IbC1dbKumnJmtlAmHvptoQJH_JStg3Wws/s1600/Definition+of+Marine+Insurance.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Definition of Marine Insurance"><img class="c1" ad="true" alt="Definition of Marine Insurance" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizX02Vk3GsKhTaZ4jsb77AwE3JgYbtD-f7EVVr2W7iDhuw7QugHOAKmjdLLsKj0N0zIQVhP3IUftkqV4AjuR_sFbbfTWlXZUQWbXkxFb0re8IbC1dbKumnJmtlAmHvptoQJH_JStg3Wws/s1600/Definition+of+Marine+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 222px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>According to Marine Insurance Act 1963,</p><blockquote>“An agreement whereby the insurer undertakes to indemnify the assured, in the manner and to the extent thereby agreed, against losses incidental to marine adventure. It may cover loss or damage to vessels, cargo or freight.”.</blockquote><h2><span style="color:#333;font-size:small;">Types of Marine Insurance Policies</span></h2><br />
<p><strong>Different</strong> Types of Marine Insurance are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBLWNfSypJ_N6kosUXzbnw4OjqLcQrn_5gdGlDLLgxh-UhksmUmg9-jRil185ookZubZWX1p3aqT52C7gDNZpehalg53-tvrSTSbygjct6-CIAN4kOOtSieXtW5ydOqPnFQ8OXtNn1yL8/s1600/Types+of+Marine+Insurance+Policies.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Types of Marine Insurance Policies"><img class="c1" ad="true" alt="Types of Marine Insurance Policies" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhBLWNfSypJ_N6kosUXzbnw4OjqLcQrn_5gdGlDLLgxh-UhksmUmg9-jRil185ookZubZWX1p3aqT52C7gDNZpehalg53-tvrSTSbygjct6-CIAN4kOOtSieXtW5ydOqPnFQ8OXtNn1yL8/s1600/Types+of+Marine+Insurance+Policies.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 479px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>Importance</strong> of Marine Insurance Policies are given below.</p><ol type="1"><li>Voyage Policy</li><li>Time Policy</li><li>Mixed or Time and Voyage Policy</li><li>Valued Policy</li><li>Floating Policy</li><li>Blanket Policy</li><li>Port Risk Policy</li><li>Composite Policy</li></ol><p><strong>Principles</strong>, <strong>Conditions</strong> of Marine Insurance are follows:</p><h2><span style="color:#333;font-size:small;">1. Voyage Policy</span></h2><br />
<p>What is Voyage Policy? Meaning of Voyage Policy are given in the diagram below.</p><div class="separator"><p><a href="http://2.bp.blogspot.com/-bnaDQGJjxoc/U7rN_Zd6cxI/AAAAAAAABSM/tUFedTVUD2E/s1600/What+is+Voyage+Policy.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Voyage Policy"><img class="c1" ad="true" alt="Voyage Policy" border="0" src="http://2.bp.blogspot.com/-bnaDQGJjxoc/U7rN_Zd6cxI/AAAAAAAABSM/tUFedTVUD2E/s1600/What+is+Voyage+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 326px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In marine insurance, <strong>specific</strong> voyage policy is an <a href="http://articles-junction.blogspot.com/2013/06/what-is-need-and-importance-of-consumer.html">important</a> policy. Under this scheme, the risk is covered for a particular voyage (transit) only. The insurance company undertakes to pay compensation for the loss occurred during that stated voyage. The voyage may require any period for completion. The insurance contract is for the transit between two ports. It is effective from the starting port, and it is completed on reaching the goods to the destination.</p><h2><span style="color:#333;font-size:small;">2. Time Policy</span></h2><br />
<p>What is Time Policy? Meaning of Time Policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlYY3FjG40DFqTX80jEZJzEYp79AqbW1rvG8fUj2oMGzVLsBW9Bs0ZH15cphqbY1VIMOPPYIygvckwnZqwWsC2vks19YtSDCHVaKxe6bWzyvjZ38K3waq57Gkc_dJMqfKaHcrLP7Zkmxc/s1600/What+is+Time+Policy.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Time Policy"><img class="c1" ad="true" alt="Time Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhlYY3FjG40DFqTX80jEZJzEYp79AqbW1rvG8fUj2oMGzVLsBW9Bs0ZH15cphqbY1VIMOPPYIygvckwnZqwWsC2vks19YtSDCHVaKxe6bWzyvjZ38K3waq57Gkc_dJMqfKaHcrLP7Zkmxc/s1600/What+is+Time+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 279px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In marine insurance, time Policy <strong>management</strong> is an <a href="http://articles-junction.blogspot.com/2013/07/need-importance-of-feedback-in-process.html">important</a> policy. Under this scheme, the risk is covered for a particular period only. The insurance company undertakes to pay for the loss occurred during the stated period. The goods may be shipped anywhere; the insurer carries the risk for the specified time. The time policy cannot be for more than the twelve-month period.</p><h2><span style="color:#333;font-size:small;">3. Mixed or Time and Voyage Policy</span></h2><br />
<p>What is Mixed or Time and Voyage Policy? Meaning of Mixed or Time and Voyage Policy are given in the diagram below.</p><div class="separator"><p><a href="http://1.bp.blogspot.com/-U20w2Odz6nI/U7rRdAHbPAI/AAAAAAAABSk/ZMaSe0gkRd4/s1600/What+is+Mixed+or+Time+and+Voyage+Policy.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Mixed or Time and Voyage Policy"><img class="c1" ad="true" alt="Mixed or Time and Voyage Policy" border="0" src="http://1.bp.blogspot.com/-U20w2Odz6nI/U7rRdAHbPAI/AAAAAAAABSk/ZMaSe0gkRd4/s1600/What+is+Mixed+or+Time+and+Voyage+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 217px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In marine insurance, mixed or time and voyage policy is an <a href="http://articles-junction.blogspot.com/2013/07/role-ojective-function-need-importance.html">important</a> policy. Under this scheme, the contract is for a particular time and also for a particular voyage. This policy is a blend of time policy and voyage policy.</p><h2><span style="color:#333;font-size:small;">4. Valued Policy</span></h2><br />
<p>What is Valued Policy? Meaning of Valued Policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHBTh_uAFuChpk-HSGhsC-fthYa3D8hmg8o-k7tXgkHQHbrfaj5gg5v16JFivoUsu4eK-iCqLtwAeAiXmEgAd0tJvGcBsxSm8G4nZPfRWJv2OCGU1Zb2-FA0FPbhnR8dLwyTRHKsjjtnw/s1600/What+is+Valued+Policy.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Valued Policy"><img class="c1" ad="true" alt="Valued Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHBTh_uAFuChpk-HSGhsC-fthYa3D8hmg8o-k7tXgkHQHbrfaj5gg5v16JFivoUsu4eK-iCqLtwAeAiXmEgAd0tJvGcBsxSm8G4nZPfRWJv2OCGU1Zb2-FA0FPbhnR8dLwyTRHKsjjtnw/s1600/What+is+Valued+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 259px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In marine insurance, valued policy is an <a href="http://articles-junction.blogspot.com/2013/08/need-importance-significance-role-of.html">important</a> policy. Under this scheme, the value of the subject matter is agreed beforehand. The valuation is based on cost, freight, insurance premiums, loading charges, agreed percentage of profits, etc. The value is called “insured value.” This value is entered in the policy.</p><h2><span style="color:#333;font-size:small;">5. Floating Policy</span></h2><br />
<p>What is Floating Policy? Meaning of Floating Policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3xODCSBDihIOJtXMLmx4sJrs3BfG2xhZu8Dk2kSoFeegE5TjutGiFtzpO3mzchVYRwvz97JT3KXSwUKSdTp0geZP325pUYKqiOm_FlP1O8YGVoZ9-Jhe6szxkGWdESTK0abHgUiyUCsk/s1600/What+is+Floating+Policy.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Floating Policy"><img class="c1" ad="true" alt="Floating Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3xODCSBDihIOJtXMLmx4sJrs3BfG2xhZu8Dk2kSoFeegE5TjutGiFtzpO3mzchVYRwvz97JT3KXSwUKSdTp0geZP325pUYKqiOm_FlP1O8YGVoZ9-Jhe6szxkGWdESTK0abHgUiyUCsk/s1600/What+is+Floating+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 335px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In marine insurance, floating policy is an <a href="http://articles-junction.blogspot.com/2013/08/define-oral-communication-nature-and.html">important</a> policy. Under this scheme, the particular ship is not mentioned. A lump-sum premium is paid for taking out such a policy. The insured informs the details about the shipments from time to time. The total round sum is first credited in the books of the insurer in insured's account. This amount is debited from time to time, as and when the insurance policies are taken for <a href="http://articles-junction.blogspot.com/2013/08/different-methods-of-communication-with.html">different</a> ships. This type of policy is very convenient for the businessman or the shippers which are regularly engaged in voyages (export and import).</p><h2><span style="color:#333;font-size:small;">6. Blanket Policy</span></h2> <br />
<p>What is Blanket Policy? Meaning of Blanket Policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgC6gXztaRUFQOW17Y_b3c2fF7-bZ1h6SSyDxDTcjM5lg3NcVzbucSfI41kI932KWyEx9X-5Csx-oZzNzSb7lcFVg33w-Pu_PyAl1YKOBU-m-cMgoPRFBcAEDSpb8cMEq3bpr_2R55-vUM/s1600/What+is+Blanket+Policy.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Blanket Policy"><img class="c1" ad="true" alt="Blanket Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgC6gXztaRUFQOW17Y_b3c2fF7-bZ1h6SSyDxDTcjM5lg3NcVzbucSfI41kI932KWyEx9X-5Csx-oZzNzSb7lcFVg33w-Pu_PyAl1YKOBU-m-cMgoPRFBcAEDSpb8cMEq3bpr_2R55-vUM/s1600/What+is+Blanket+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 323px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In marine insurance, blanket policy is an important policy. Under this policy, the maximum amount of <a href="http://articles-junction.blogspot.com/2013/07/role-of-world-trade-organization-in.html">protection</a> which needed is assessed, which are procured in bulk. Under this policy, the maximum amount of <a href="http://articles-junction.blogspot.com/2013/06/what-are-rights-of-consumer-as-per.html">protection</a> which needed is assessed, which are procured in bulk. The total amount of the premium is paid in advance. This policy depicts the goods, ports specific routes and the places of the voyages according to this <a href="http://articles-junction.blogspot.com/2014/06/factors-affecting-capital-structure-of.html">factors</a> risks is covered.</p><h2><span style="color:#333;font-size:small;">7. Port Risk Policy</span></h2> <br />
<p>What is Port Risk Policy? Meaning of Port Risk Policy are given in the diagram below.</p><div class="separator"><p><a href="http://3.bp.blogspot.com/-BKl7OrArMuc/U7rXEv2RCuI/AAAAAAAABTg/svRvKmhfQ8U/s1600/What+is+Port+Risk+Policy.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Port Risk Policy"><img class="c1" ad="true" alt="Port Risk Policy" border="0" src="http://3.bp.blogspot.com/-BKl7OrArMuc/U7rXEv2RCuI/AAAAAAAABTg/svRvKmhfQ8U/s1600/What+is+Port+Risk+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 241px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In marine insurance, port risk policy is an important policy. It covers all the risks of a vessel, although it is anchored at the port for an exact period of time. This policy is applicable from the starting point of the port to the departure of the vessel to the port.</p><h2><span style="color:#333;font-size:small;">8. Composite Policy</span></h2><br />
<p>What is Composite Policy? Meaning of Composite Policy are given in the diagram below.</p><div class="separator"><p><a href="http://4.bp.blogspot.com/-MDEeLjrt_bI/U7rYRYbv-cI/AAAAAAAABTw/RVqo-cXPKS8/s1600/What+is+Composite+Policy.png" imageanchor="1" rel="lightbox-Types-of-Marine-Insurance-Policies" title="Composite Policy"><img class="c1" ad="true" alt="Composite Policy" border="0" src="http://4.bp.blogspot.com/-MDEeLjrt_bI/U7rYRYbv-cI/AAAAAAAABTw/RVqo-cXPKS8/s1600/What+is+Composite+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 208px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In marine insurance, composite policy is an important policy. Such kinds of policies are procured from more than one insurers. The <a href="http://articles-junction.blogspot.com/2013/10/functions-of-financial-management.html">financial</a> obligation of each insurer is <a href="http://articles-junction.blogspot.com/2013/08/different-types-forms-of-nonverbal.html">different</a> and distinct.</p><h2><span style="color:#333;font-size:small;">Some important articles on insurance policies are given below.</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2014/06/what-is-insurance-meaning-definition-of.html">What is Insurance? Meaning, Definition of Insurance</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/principles-of-insurance-basic.html">Principles of Insurance - Basic Principles of Insurance - Diagram</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-life-insurance-policies-life.html">Types of Life Insurance Policies Life Insurance Definition Meaning</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-fire-insurance-polices-meaning.html">Types of Fire Insurance Polices - Meaning and Definition of Fire Insurance</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com6tag:blogger.com,1999:blog-8295104352019308349.post-79669653427689392342014-07-08T05:10:00.001-06:002014-07-08T13:57:08.581-06:00 Types of Fire Insurance Polices - Meaning and Definition of Fire Insurance<h2><span style="color:#333;font-size:small;">Meaning of Fire Insurance</span></h2><br />
<p>What is fire <a href="http://articles-junction.blogspot.com/2014/06/what-is-insurance-meaning-definition-of.html">insurance</a> is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjftJrmmWGmm8rzLkVWMfYyNWQXjmB4ZaMGeHG1Kh1S8Dr8RFnKjuFwYgmf3h6AelK-agXYJ49k0IzH2hnfYFciMBe5YIWuDuvzDcK2Wv0OiDlUIS2JhyXQGo5loukd2QKlDU0X9RRJ-SQ/s1600/Meaning+of+Fire+Insurance.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Meaning of Fire Insurance"><img class="c1" ad="true" alt="Meaning of Fire Insurance" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjftJrmmWGmm8rzLkVWMfYyNWQXjmB4ZaMGeHG1Kh1S8Dr8RFnKjuFwYgmf3h6AelK-agXYJ49k0IzH2hnfYFciMBe5YIWuDuvzDcK2Wv0OiDlUIS2JhyXQGo5loukd2QKlDU0X9RRJ-SQ/s1600/Meaning+of+Fire+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 362px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>“A fire <a href="http://articles-junction.blogspot.com/2014/07/principles-of-insurance-basic.html">insurance</a> is a contract under which the insurer in return for a consideration (premium) agrees to indemnify the insured for the <a href="http://articles-junction.blogspot.com/2013/10/what-is-financial-management-objective.html">financial</a> loss which the latter may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period.”</p><p>Fire <a href="http://articles-junction.blogspot.com/2014/07/types-of-life-insurance-policies-life.html">insurance</a> is the popular form of general insurance. It is perfectly based on 'Principle of Indemnity'. In fact, all the five principles viz. Principle of utmost good faith, insurable interest, indemnity, subrogation; mitigations of loss are applicable to fire <a href="http://articles-junction.blogspot.com/2014/07/types-of-marine-insurance-policies.html">insurance</a>.</p><a name='more'></a><br />
<h2><span style="color:#333;font-size:small;">Definition of Fire Insurance</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/meaning-of-communication-definition-of.html">Definition</a> of fire insurance is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZdjhZUTJhgRvioGthi7a1hSarQDwdTFiTzYtGj93yg6z_9dQ5CGuuXAFMG6S5WMAOC5XTSCor0NUy9hlKjwKlB4v8-yjDmSReZbLV7XikWRcsiTOBcoOikE0iu5MqPzQ1GnlkW90V2A8/s1600/Definition+of+Fire+Insurance.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Definition of Fire Insurance"><img class="c1" ad="true" alt="Definition of Fire Insurance" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZdjhZUTJhgRvioGthi7a1hSarQDwdTFiTzYtGj93yg6z_9dQ5CGuuXAFMG6S5WMAOC5XTSCor0NUy9hlKjwKlB4v8-yjDmSReZbLV7XikWRcsiTOBcoOikE0iu5MqPzQ1GnlkW90V2A8/s1600/Definition+of+Fire+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 320px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Fire insurance contract is a contract by which the insurer undertakes, in exchange of consideration (Premium), to compensate the insured against loss by fire during a particular period and up to an agreed value.</p><p>According to Indian Fire Insurance Act, 1938</p><blockquote>“In addition to other insurances, fire insurance is that insurance contract which takes place against fire and such other risk, which are mentioned in the fire insurance contract.”</blockquote><h2><span style="color:#333;font-size:small;">Types of Fire Insurance Polices</span></h2><br />
<p><strong>Different</strong>, <strong>Explain</strong> the types of fire insurance policies are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdHEcv2nK-OCNFeIwYtChzyhO33thAil77EL5BRNK8ePSZtn97X9chtUCiMEz3dm4oHxM8f3BqLE6XN-ehyphenhyphenoyRwe0bFipAJuwCxFtHhVWipCbtxZMKTVjMS3JacTQQfz_mte2qrBYU2f8/s1600/Types+of+Fire+Insurance+Polices.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Types of Fire Insurance Polices"><img class="c1" ad="true" alt="Types of Fire Insurance Polices" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdHEcv2nK-OCNFeIwYtChzyhO33thAil77EL5BRNK8ePSZtn97X9chtUCiMEz3dm4oHxM8f3BqLE6XN-ehyphenhyphenoyRwe0bFipAJuwCxFtHhVWipCbtxZMKTVjMS3JacTQQfz_mte2qrBYU2f8/s1600/Types+of+Fire+Insurance+Polices.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 445px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>Various</strong>, types of fire insurance policies are given below.</p><ol type="1"><li>Valued policy</li><li>Average policy</li><li>Specific policy</li><li>Floating policy</li><li>Comprehensive policy</li><li>Excess policy</li><li>Re-instatement policy</li><li>Blanket policy</li></ol><p><strong>Features</strong>, <strong>importance</strong> of Fire Insurance are given below.</p><h2><span style="color:#333;font-size:small;">1. Valued policy</span></h2><br />
<p><strong>What is Valued Policy?</strong> <strong><a href="http://articles-junction.blogspot.com/2013/07/meaning-definition-nature.html">Meaning</a> of Valued Policy</strong> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6GlbyTcC02WVHajeXRWXRm_PMvn0u-GY1mRdcaiAqOUzw-sBE9tZxiUTgA3PUDJe9BtQhLl7fRdSFcc1cuHUVo76SZLzhPFIzYCo6lD2VYeJIINjYQoYMyZsNnWNi2UCtznU8j2ludLA/s1600/What+is+Valued+policy.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Valued policy"><img class="c1" ad="true" alt="Valued policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi6GlbyTcC02WVHajeXRWXRm_PMvn0u-GY1mRdcaiAqOUzw-sBE9tZxiUTgA3PUDJe9BtQhLl7fRdSFcc1cuHUVo76SZLzhPFIzYCo6lD2VYeJIINjYQoYMyZsNnWNi2UCtznU8j2ludLA/s1600/What+is+Valued+policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 325px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In types of fire insurance policies, valued policy is an important policy. Under this scheme, the insurance company first values the property to be insured with the help of surveyors. This value is entered in the policy. The insurer undertakes to pay compensation up to that value, if the subject matter suffers loss by fire. Such type of policy is usually taken for the property which cannot be valued easily. In such a case, the insured has no responsibility to prove the value of actual loss.</p><h2><span style="color:#333;font-size:small;">2. Average policy</span></h2><br />
<p><strong>What is Average policy?</strong> <strong><a href="http://articles-junction.blogspot.com/2013/07/meaning-of-communication-definition-of.html">Meaning</a> of Average policy</strong> are given in the diagram below.</p><div class="separator"><p><a href="http://1.bp.blogspot.com/-WQCmxTCgo90/U7faevieIhI/AAAAAAAABPU/4n8HLUTcEpA/s1600/What+is+Average+Policy.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Average policy"><img class="c1" ad="true" alt="Average policy" border="0" src="http://1.bp.blogspot.com/-WQCmxTCgo90/U7faevieIhI/AAAAAAAABPU/4n8HLUTcEpA/s1600/What+is+Average+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 363px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In types of fire insurance policies, average policy is an important policy. Under this scheme, if the property is not insured for its full value, i.e. if it is under-insured, the compensation is also under-paid proportionately e.g. if the property of $50,000 is insured for $25,000 (under-insured) and if the actual loss is estimated at $20,000, the insurance company will pay Z $10,000. Because as the value of policy is half of the value of property, the insurance company pays compensation also at half the actual loss. This is an exception to the general rule of payment of actual loss. Under this type of policy, the insured party is penalized for under insurance. This average clause is automatically cancelled if property is insured at its full value.</p><h2><span style="color:#333;font-size:small;">3. Specific policy</span></h2><br />
<p><strong>What is Specific policy?</strong> <strong>Meaning of Specific policy</strong> are given in the diagram below.</p><div class="separator"><p><a href="http://3.bp.blogspot.com/--NqQfEReewc/U7fcRWzXLFI/AAAAAAAABPg/pAyACfOB84Q/s1600/What+is+Specific+policy.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Specific policy"><img class="c1" ad="true" alt="Specific policy" border="0" src="http://3.bp.blogspot.com/--NqQfEReewc/U7fcRWzXLFI/AAAAAAAABPg/pAyACfOB84Q/s1600/What+is+Specific+policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 275px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In types of fire insurance policies, average policy is an important policy. Under this scheme, the fire policy covers the risk for a definite or fixed value. In case of loss the insurance company pays compensation up to the amount of policy or the actual loss, whichever is less e.g. If property of $50,000 is insured for a specific value of $25,000. In case of loss of $5,000, compensation will be $5,000, for a loss of $10,000; the compensation will be $10,000, But for a loss of $28,000, it will be Z $25,000 only.</p><h2><span style="color:#333;font-size:small;">4. Floating policy</span></h2><br />
<p><strong>What is Floating policy?</strong> <strong>Meaning of Floating policy</strong> are given in the diagram below.</p><div class="separator"><p><a href="http://1.bp.blogspot.com/-GBYoBlvis-k/U7ffHWS353I/AAAAAAAABPs/IHe7Chyz77Y/s1600/What+is+Floating+policy.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Floating policy"><img class="c1" ad="true" alt="Floating policy" border="0" src="http://1.bp.blogspot.com/-GBYoBlvis-k/U7ffHWS353I/AAAAAAAABPs/IHe7Chyz77Y/s1600/What+is+Floating+policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 320px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In types of fire insurance policies, floating policy is an important policy. Under this scheme, the goods stored at different places and the goods in transit are covered under a single policy. The rate of premium is fixed on average value of goods. The average value of goods is calculated by dividing the total value of goods stored at different places by the number of places, or in other words; the premium is fixed at an average rate, i.e. average of the premiums that would have been paid-off each lot of goods at different places had they been insured. All the goods are covered in this policy.</p><h2><span style="color:#333;font-size:small;">5. Comprehensive policy</span></h2><br />
<p><strong>What is Comprehensive policy?</strong> <strong>Meaning of Comprehensive policy</strong> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtQT_vnQr041J-ctRLnTWogbrgKZ3OEWmYshnZ5UDqCcqnD9HkwoZnrAxZSDEaeSRymOcyr6TWp5nn28bT71lQtecM8_HV6kiQf2Lziv9eGl6k1ZbZA4OSwQ0hrPdOoesPc3vfSAt4vUU/s1600/What+is+Comprehensive+policy.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Comprehensive policy"><img class="c1" ad="true" alt="Comprehensive policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjtQT_vnQr041J-ctRLnTWogbrgKZ3OEWmYshnZ5UDqCcqnD9HkwoZnrAxZSDEaeSRymOcyr6TWp5nn28bT71lQtecM8_HV6kiQf2Lziv9eGl6k1ZbZA4OSwQ0hrPdOoesPc3vfSAt4vUU/s1600/What+is+Comprehensive+policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 193px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In types of fire insurance policies, comprehensive policy is an important policy. Under this scheme, the insurance company covers all types of risk. The property may be damaged by any cause- the insurance company pays compensation.</p><h2><span style="color:#333;font-size:small;">6. Excess policy</span></h2><br />
<p><strong>What is Excess policy?</strong> <strong>Meaning of Excess policy</strong> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1k_nWYP6_67uRAbB7BTPToiXZkx3O4Ucta1jOTmY0suURi8edRJI3EuIvxccQKCcyU_p_SfO7inC4EIGWizuzkW0gD1IE19OK4i7_9v3h2H-TEJZF_eZ5gDRM1MIb7rCMPBGLbuurmXo/s1600/What+is+Excess+policy.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Excess policy"><img class="c1" ad="true" alt="Excess policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1k_nWYP6_67uRAbB7BTPToiXZkx3O4Ucta1jOTmY0suURi8edRJI3EuIvxccQKCcyU_p_SfO7inC4EIGWizuzkW0gD1IE19OK4i7_9v3h2H-TEJZF_eZ5gDRM1MIb7rCMPBGLbuurmXo/s1600/What+is+Excess+policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 268px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In types of fire insurance policies, excess policy is an important policy. Under this scheme, the businessman takes out one policy for one minimum amount under which his stock does not fall, and another policy is taken for the amount by which his stock rises. E.g. if the stock of a businessman is always between $30,000 to $40,000, he may take one policy for the minimum, i.e. $30,000. Another policy will be taken for the rise, if any. This policy taken for the rise is known as excess policy.</p><h2><span style="color:#333;font-size:small;">7. Re-instatement policy</span></h2><br />
<p><strong>What is Re-instatement?</strong> <strong>Meaning of Re-instatement</strong> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyjWt9pWl0Y6NTZ3BJkhRKAUoC_0x1dpmKclFrXa2p9ALDn2TGby2UHMHHZBGVV4xmTVJbZWWTP_zx23TG6PP154Njt3hYiHjnnd096F9C4jOBgZ6WvoHqT5YB5DA4WVTY5mDzV8mNwOE/s1600/What+is+Re-instatement+policy.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Re-instatement policy"><img class="c1" ad="true" alt="Re-instatement policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyjWt9pWl0Y6NTZ3BJkhRKAUoC_0x1dpmKclFrXa2p9ALDn2TGby2UHMHHZBGVV4xmTVJbZWWTP_zx23TG6PP154Njt3hYiHjnnd096F9C4jOBgZ6WvoHqT5YB5DA4WVTY5mDzV8mNwOE/s1600/What+is+Re-instatement+policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 200px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In types of fire insurance policies, re-instatement policy is an important policy. Under this scheme, the insurance company pays compensation, which is sufficient to re-instate in a former position as before the loss.</p><h2><span style="color:#333;font-size:small;">8. Blanket policy</span></h2><br />
<p><strong>What is Blanket policy?</strong> <strong>Meaning of Blanket policy</strong> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMweKTFAOdgStco3wJ2xu77W8z_dWcUpv23jKPl1QLK_U3CfhcgffSDFqMLYPhhxRd1VGkB3r83zlcCwURNkEitqoXF_kOhRWNuzhCVnOvyEl0NnRqDPxY_bZNPINpwHA2rrjcEHGfNn8/s1600/What+is+Blanket+policy.png" imageanchor="1" rel="lightbox-Types-of-Fire-Insurance-Polices" title="Blanket policy"><img class="c1" ad="true" alt="Blanket policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhMweKTFAOdgStco3wJ2xu77W8z_dWcUpv23jKPl1QLK_U3CfhcgffSDFqMLYPhhxRd1VGkB3r83zlcCwURNkEitqoXF_kOhRWNuzhCVnOvyEl0NnRqDPxY_bZNPINpwHA2rrjcEHGfNn8/s1600/What+is+Blanket+policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 167px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In types of fire insurance policies, blanket policy is an important policy. Under this scheme, a single policy covers all the Fixed as well as Current Assets.</p><h2><span style="color:#333;font-size:small;">Some important articles on insurance policies are given below.</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2014/06/what-is-insurance-meaning-definition-of.html">What is Insurance? Meaning, Definition of Insurance</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/principles-of-insurance-basic.html">Principles of Insurance - Basic Principles of Insurance - Diagram</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-life-insurance-policies-life.html">Types of Life Insurance Policies Life Insurance Definition Meaning</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-marine-insurance-policies.html">Types of Marine Insurance Policies - Importance, Conditions of Marine Insurance policies</a></p><br />
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Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-71618036846866127462014-07-08T05:05:00.000-06:002014-07-08T13:42:36.356-06:00Types of Life Insurance Policies Life Insurance Definition Meaning<h2><span style="color:#333;font-size:small;">Meaning of Life Insurance</span></h2><br />
<p><strong>Meaning</strong> of Life <a href="http://articles-junction.blogspot.com/2014/06/what-is-insurance-meaning-definition-of.html">Insurance</a> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgO_nMQyvxjlCP3lebR4VToFFGERTnqt7D23WWVCu03AJvqqRL4n4ycANpj2ynMLEmupl2Iwv-VwfBCgK5K2vvZ1rn_o3eXxHeIOPH022G4ru8VuBJTD0lDgWrmza9RJ7gj-CyIS1nZ_Z0/s1600/Meaning+of+Life+Insurance.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Meaning of Life Insurance"><img class="c1" ad="true" alt="Meaning of Life Insurance" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgO_nMQyvxjlCP3lebR4VToFFGERTnqt7D23WWVCu03AJvqqRL4n4ycANpj2ynMLEmupl2Iwv-VwfBCgK5K2vvZ1rn_o3eXxHeIOPH022G4ru8VuBJTD0lDgWrmza9RJ7gj-CyIS1nZ_Z0/s1600/Meaning+of+Life+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 276px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In Life <a href="http://articles-junction.blogspot.com/2014/07/principles-of-insurance-basic.html">Insurance</a> contact, the human life is insured against old age illness, accident, death, etc. Life insurance contract is not a contract indemnity. Hence the insurer has to reimburse a definite sum on the maturity or completion of policy.</p><a name='more'></a><p>Life <a href="http://articles-junction.blogspot.com/2014/07/types-of-fire-insurance-polices-meaning.html">Insurance</a> is only for those who survive, and not for the person who passes away. It is moral responsibility of every person to protect his family member from uncertain circumstances or death. Hence Life <a href="http://articles-junction.blogspot.com/2014/07/types-of-marine-insurance-policies.html">insurance</a> plays a vital role in the world.</p><h2><span style="color:#333;font-size:small;">Definition of Life Insurance</span></h2><br />
<p><strong><a href="http://articles-junction.blogspot.com/2013/07/meaning-of-communication-definition-of.html">Definition</a></strong> of Life Insurance are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyG0C-rC1F-2IgHo0xXk-GQSaxRDVqlckCZfDHDRqHV04X8OWbjXWt4qcjIVf6G8cLsxgD6vyqC1tfSuuKBNwSMewk3nUu0kxakgD_b0w-pDtiGd4QrI3APUF-TE3__gSWOAdyofaeUFE/s1600/Definition+of+Life+Insurance.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Definition of Life Insurance"><img class="c1" ad="true" alt="Definition of Life Insurance" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyG0C-rC1F-2IgHo0xXk-GQSaxRDVqlckCZfDHDRqHV04X8OWbjXWt4qcjIVf6G8cLsxgD6vyqC1tfSuuKBNwSMewk3nUu0kxakgD_b0w-pDtiGd4QrI3APUF-TE3__gSWOAdyofaeUFE/s1600/Definition+of+Life+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 202px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><a href="http://articles-junction.blogspot.com/2013/08/define-grapevine-communication-and-types.html">Definition</a> of Life Insurance is follow.</p><blockquote>“A contract where an insurance company undertakes in consideration of regular payment of premium to pay a certain sum of money to the assured on maturity of policy or death, whichever is earlier”</blockquote><h2><span style="color:#333;font-size:small;">Types of Life Insurance Policies</span></h2><br />
<p><strong><a href="http://articles-junction.blogspot.com/2013/08/different-types-forms-of-nonverbal.html">Different</a></strong> Types of Life Insurance Policies are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEje9khb9N5mPGtuSLmUdfhpsA_dlwNBtI4rdtBPkniFPsU_T3EULgQIJisGI64UeEh7DliUvA8UIyfNej3AED-ssmTvzloINSCFtIdqqDD455GjS5ZND4jQkyFam7yTvfPahYEpNwF5UZc/s1600/Types+of+Life+Insurance+Policies.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Types of Life Insurance Policies"><img class="c1" ad="true" alt="Types of Life Insurance Policies" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEje9khb9N5mPGtuSLmUdfhpsA_dlwNBtI4rdtBPkniFPsU_T3EULgQIJisGI64UeEh7DliUvA8UIyfNej3AED-ssmTvzloINSCFtIdqqDD455GjS5ZND4jQkyFam7yTvfPahYEpNwF5UZc/s1600/Types+of+Life+Insurance+Policies.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 453px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>Best</strong> Life Insurance Policies are given below.</p><ol type="1"><li>Whole life Policy</li><li>Endowment Insurance policy</li><li>Term Insurance policy</li>
<li>Money-Back Policy</li><li>Joint Life Policy</li><li>Annuity Policy</li>
<li>Pension Plan Policy</li><li>ULIP (Unit Linked Insurance Policy)</li>
</ol><p>Life insurance policy types are given below.</p><h2><span style="color:#333;font-size:small;">1. Whole life Policy</span></h2><br />
<p>What is whole life policy? <a href="http://articles-junction.blogspot.com/2013/08/define-oral-communication-nature-and.html">Define</a>, Meaning of whole life policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgG6JjcUhXTDU6Ei7nhJNavEjoaB6bJv-aslSRdUulCBwvxlBA9ErACztPTbIzYe3rQtuaS50DJmid1fxm7uB4hFBk90-BRgxHpJRE3Lvf-q02f_pgJMIf4m7UtvEKLHbtcZXr2Dr7GCSE/s1600/Whole+life+Policy.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Whole life Policy"><img class="c1" ad="true" alt="Whole life Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgG6JjcUhXTDU6Ei7nhJNavEjoaB6bJv-aslSRdUulCBwvxlBA9ErACztPTbIzYe3rQtuaS50DJmid1fxm7uB4hFBk90-BRgxHpJRE3Lvf-q02f_pgJMIf4m7UtvEKLHbtcZXr2Dr7GCSE/s1600/Whole+life+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 279px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Types of life insurance policies, whole life policy is an <a href="http://articles-junction.blogspot.com/2013/08/need-importance-significance-role-of.html">important</a> policy. Under this policy, a person is insured for whole life. The insurance company cannot pay any money to the insured until he is alive. The premium for such policy is very low. Under this policy, the money is payable only after the death of the insured person to his legal heir or his nominee. This policy is more beneficial for the family of the deceased, as it provides <a href="http://articles-junction.blogspot.com/2013/09/functions-of-financial-system-functions.html">financial</a> assistance to the family after the death of the insured person.</p><h2><span style="color:#333;font-size:small;">2. Endowment Insurance policy</span></h2><br />
<p>What is endowment insurance policy? <a href="http://articles-junction.blogspot.com/2013/07/define-persuasion-importance-of.html">Define</a>, Meaning of endowment insurance policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0ODIT7lF35etDLAN_9GgP-LV12fL9PY8fQq2uMMVjym0VvIOKkWKnHmVj92isK-HE5HED9y21pcGEA-y0INWE2n-JxOjqCpHXHqALY_2J5OK5xc4Ku2DmKe6ObpdK1_GzhUlt0sWzl80/s1600/Endowment+Insurance+policy.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Endowment Insurance policy"><img class="c1" ad="true" alt="Endowment Insurance policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0ODIT7lF35etDLAN_9GgP-LV12fL9PY8fQq2uMMVjym0VvIOKkWKnHmVj92isK-HE5HED9y21pcGEA-y0INWE2n-JxOjqCpHXHqALY_2J5OK5xc4Ku2DmKe6ObpdK1_GzhUlt0sWzl80/s1600/Endowment+Insurance+policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 277px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Types of Life Insurance Policies, endowment insurance policy is an important policy. Insurance is taken for a specific time in such policies. In this policy, the sum assured along with the bonus is given on his death to the dependent of the family or on the expiry of the particular time, the insured get the specific sum along with bonus. Such insurance plans are famous these days as it protects the family of the dead person or provides old-age pension to the insured.</p><h2><span style="color:#333;font-size:small;">3. Term Insurance policy</span></h2><br />
<p>What is term insurance policy? <a href="http://articles-junction.blogspot.com/2013/07/define-order-types-of-orders.html">Define</a>, Meaning of term insurance policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh495cpnGKLZFcFFULuxJiDjsLH4qmsQTYOoroU_J2lNDYi1rw1C8NBAxDTFMlhToNv32rJE6_f61bmX2tY6H1Kv6iwgA3fhpS0HZ0gfh4Q9WDgCEffLQiSuyliJQPcne2d5tBztkK_8Zc/s1600/Term+Insurance+policy.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Term Insurance policy"><img class="c1" ad="true" alt="Term Insurance policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh495cpnGKLZFcFFULuxJiDjsLH4qmsQTYOoroU_J2lNDYi1rw1C8NBAxDTFMlhToNv32rJE6_f61bmX2tY6H1Kv6iwgA3fhpS0HZ0gfh4Q9WDgCEffLQiSuyliJQPcne2d5tBztkK_8Zc/s1600/Term+Insurance+policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 252px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Types of Life Insurance Policies, term insurance policy is an important policy. The period of such policies is specific. The premium of this policy is the lowest among all the insurance schemes. Throughout the term of the policy, the premium is fix, and it does not change. In the term life insurance agreement, dependents will receive the specified benefited amount in case of untimely death of the person.</p><h2><span style="color:#333;font-size:small;">4. Money-Back Policy</span></h2><br />
<p>What is money-back policy? <a href="http://articles-junction.blogspot.com/2013/07/define-warning-importance-of-early.html">Define</a>, Meaning of money-back policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSfS78-X_4kX_PfK016pe3hyphenhyphen4fm_9vXzA3tkKuP0qjqpW74BXpOfHPzdHXN7kkhLw0pEhKsupCsNa7vl7cTxFaCF2PzZFoVs3OHHHrEYbpPJKL_aVHz524Q2ZvHUMmVw_rJUJPJoyA8MY/s1600/Money-Back+Policy.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Money-Back Policy"><img class="c1" ad="true" alt="Money-Back Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSfS78-X_4kX_PfK016pe3hyphenhyphen4fm_9vXzA3tkKuP0qjqpW74BXpOfHPzdHXN7kkhLw0pEhKsupCsNa7vl7cTxFaCF2PzZFoVs3OHHHrEYbpPJKL_aVHz524Q2ZvHUMmVw_rJUJPJoyA8MY/s1600/Money-Back+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 235px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Types of Life Insurance Policies, money-back policy is an important policy. Money-Back policy gives a regular percentage of the sum assured during the life time of the policy. It also guarantees the benefit of a full sum assured in the event of the decease of the insured to the dependents of the family. Such types of policies give a dual benefit one is saving and other is the insurance cover.</p><h2><span style="color:#333;font-size:small;">5. Joint Life Policy</span></h2><br />
<p>What is joint life policy? <a href="http://articles-junction.blogspot.com/2013/07/define-education-and-training.html">Define</a>, Meaning of joint life policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgk8SK3pKLQu9mtaOlfZveT3SoYA4cj4P20WMwqLBHxkhWqtnTHNa1ZdbbsygLINflZhs_oiDphVw8JyAFWTDGOdeTNXPmHo-anyeoLL0_PEpblNatjGIgaUULi446mLY4eidLhxHqh5AE/s1600/Joint+Life+Policy.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Joint Life Policy"><img class="c1" ad="true" alt="Joint Life Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgk8SK3pKLQu9mtaOlfZveT3SoYA4cj4P20WMwqLBHxkhWqtnTHNa1ZdbbsygLINflZhs_oiDphVw8JyAFWTDGOdeTNXPmHo-anyeoLL0_PEpblNatjGIgaUULi446mLY4eidLhxHqh5AE/s1600/Joint+Life+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 293px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Types of Life Insurance Policies, money-back policy is an very important policy. Under this policies two or more people can be insured at a time. Insurable interest (trust) should be there among the person who takes such policies. It is for those people who have common interest and require joint safety for their lives. This policy can be taken by business partner or husband and wife or any person who has trust on another person. The sum assured is payable at the end of the specified term or the first death of either of the two lives assured, if earlier.</p><h2><span style="color:#333;font-size:small;">6. Annuity Policy</span></h2><br />
<p>What is annuity policy? <a href="http://articles-junction.blogspot.com/2013/07/define-spatial-interaction-basis-of.html">Define</a>, Meaning of annuity policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyUQAbaT51i2AlD4nApE4q6IK5t_Uj9HcJRjORGke3Qb3bSvnFXupHgReg9Yeu6gYkuxQh1Va1q3inakZZqO-Lngg_b55TV47eDTydVNUo5slCI6R-TjORJzf1NgXWawrzrW8fX5pSnmo/s1600/Annuity+Policy.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Annuity Policy"><img class="c1" ad="true" alt="Annuity Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjyUQAbaT51i2AlD4nApE4q6IK5t_Uj9HcJRjORGke3Qb3bSvnFXupHgReg9Yeu6gYkuxQh1Va1q3inakZZqO-Lngg_b55TV47eDTydVNUo5slCI6R-TjORJzf1NgXWawrzrW8fX5pSnmo/s1600/Annuity+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 280px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Types of Life Insurance Policies, annuity policy is an important policy. In such policies the insured has to pay the premium of the policy in installments or in the lump sum for a specific period of time. The insured will receive back a specific sum periodically from a mentioned date onwards, either for life or for the fixed number of years. Generally such kinds of policies are for those people who have some extra money and want to use the same after his retirement.</p><h2><span style="color:#333;font-size:small;">7. Pension Plan Policy</span></h2><br />
<p>What is pension plan policy? <a href="http://articles-junction.blogspot.com/2013/07/define-tourism-type-feature-of-tourism.html">Define</a>, Meaning of pension plan policy are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHYn4cuzf9zBIhs8sRiS9-SETuIxJDaJUjGvnKQpVfcjejYDLvnGhUVtIuxrZoVRTj1BQErL1WdeH5beEVu2ulRPhzzD-GEDyzrI4VdmQykOKkF7QAHkc-ya3zadbAGQVCV4qOCAxVlE4/s1600/Pension+Plan+Policy.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Pension Plan Policy"><img class="c1" ad="true" alt="Pension Plan Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHYn4cuzf9zBIhs8sRiS9-SETuIxJDaJUjGvnKQpVfcjejYDLvnGhUVtIuxrZoVRTj1BQErL1WdeH5beEVu2ulRPhzzD-GEDyzrI4VdmQykOKkF7QAHkc-ya3zadbAGQVCV4qOCAxVlE4/s1600/Pension+Plan+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 236px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Types of Life Insurance Policies, Pension policy is an very important policy. This policy is <a href="http://articles-junction.blogspot.com/2013/08/different-methods-of-communication-with.html">different</a> from all other forms of life insurance policies. As it does not provide any kind of life cover, but it offers a guaranteed income after certain period of time or life time. These insurance policies are taken to provide some <a href="http://articles-junction.blogspot.com/2013/09/indian-financial-system-and.html">financial</a> support after retirement.</p><h2><span style="color:#333;font-size:small;">8. ULIP (Unit Linked Insurance Policy)</span></h2><br />
<p>What is ULIP (Unit Linked Insurance Policy)? <a href="http://articles-junction.blogspot.com/2013/07/define-suggestion-advantages-and.html">Define</a>, Meaning of ULIP (Unit Linked Insurance Policy) are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh33sUTIyrEk2JJdu8JkVGru-hQB2DzKqX021BBG4_WNK7FLqjH2nznXRZwMdm0cCC2kcw3Jbo2DWcSxEqVnrz9_cmudebEsoxu26nFbmRpnIz9g_1jYHoYxZUntA5BJoPIEA1_iN5H7-4/s1600/ULIP+Unit+Linked+Insurance+Policy.png" imageanchor="1" rel="lightbox-Types-of-Life-Insurance-Policies" title="Unit Linked Insurance Policy"><img class="c1" ad="true" alt="Unit Linked Insurance Policy" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh33sUTIyrEk2JJdu8JkVGru-hQB2DzKqX021BBG4_WNK7FLqjH2nznXRZwMdm0cCC2kcw3Jbo2DWcSxEqVnrz9_cmudebEsoxu26nFbmRpnIz9g_1jYHoYxZUntA5BJoPIEA1_iN5H7-4/s1600/ULIP+Unit+Linked+Insurance+Policy.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 237px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Types of Life Insurance Policies, ULIP (Unit Linked Insurance Policy) is very popular policy. The private companies introduced ULIPs to merge the profits of life insurance policies with mutual funds. In such kinds of a policy's specific amount of premium is invested in listed companies or bonds, funds and remaining amount is used in fund <a href="http://articles-junction.blogspot.com/2013/10/what-is-financial-management-objective.html">management</a> expense and life insurance to provide balance.</p><p>Conslusion: Human life is full of uncertainties no one can predict what,s goo na happened next so it is important to get yourself, and your family insured. This provides an extra <a href="http://articles-junction.blogspot.com/2013/10/what-is-financial-management-objective.html">financial</a> support to your family.</p><h2><span style="color:#333;font-size:small;">Some important articles on insurance policies are given below.</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2014/06/what-is-insurance-meaning-definition-of.html">What is Insurance? Meaning, Definition of Insurance</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/principles-of-insurance-basic.html">Principles of Insurance - Basic Principles of Insurance - Diagram</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-fire-insurance-polices-meaning.html">Types of Fire Insurance Polices - Meaning and Definition of Fire Insurance</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-marine-insurance-policies.html">Types of Marine Insurance Policies - Importance, Conditions of Marine Insurance policies</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com2tag:blogger.com,1999:blog-8295104352019308349.post-19397774349484620072014-07-08T05:03:00.000-06:002014-07-08T05:39:09.995-06:00Principles of Insurance - Basic Principles of Insurance - Diagram<h2><span style="color:#333;font-size:small;">Principles of Insurance</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2014/06/what-is-insurance-meaning-definition-of.html">Insurance</a> is based on the principle of economic co-operation. It is a pooling of risks and spreading over a number of persons. It is the basic principle of insurance. The premium is collected from a number of persons, and an insurance fund is created. From this fund, the compensation is given to the contributors who suffer contingent loss. In modern days, it is now a specialized branch of commerce. Today, <a href="http://articles-junction.blogspot.com/2014/07/types-of-life-insurance-policies-life.html">insurance</a> covers a wide range of risks. It now closely related to the day-to-day life of individuals as well as of the nation. It also plays a prominent role in the national economy.</p> <p><strong>Basic</strong> Principles of <a href="http://articles-junction.blogspot.com/2014/07/types-of-fire-insurance-polices-meaning.html">Insurance</a> are given in the diagram below.</p><a name='more'></a><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoiDEYyYylmzhNc27-U32dEssioPcpE7J64-3B3a8Grs8GG-hZZsHfXsP-XXlGEYq4KZvgEp667FeDFcikO3rPbmhGlh3immGuFW9_u0GhgBgsMd31TivschlrkOpEqtk9VELXuKjtfGU/s1600/Principles+of+Insurance.png" imageanchor="1" rel="lightbox-Principles-of-Insurance" title="Principles of Insurance"><img class="c1" ad="true" alt="Principles of Insurance" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoiDEYyYylmzhNc27-U32dEssioPcpE7J64-3B3a8Grs8GG-hZZsHfXsP-XXlGEYq4KZvgEp667FeDFcikO3rPbmhGlh3immGuFW9_u0GhgBgsMd31TivschlrkOpEqtk9VELXuKjtfGU/s1600/Principles+of+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 422px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><strong>Explaination</strong>, List of 7 General principles of <a href="http://articles-junction.blogspot.com/2014/07/types-of-marine-insurance-policies.html">insurance</a> are given below.</p><ol type="1"><li><a href="http://articles-junction.blogspot.com/2013/10/what-is-capital-structure-definition-of.html">Principle</a> of Utmost Good Faith</li><li>Principle of Insurable Interest</li><li>Principle of Indemnity</li><li>Principle of Contribution</li>
<li>Principle of Subrogation</li><li>Principle of Mitigation of Loss</li>
<li>Principle of Causa Proxima</li></ol><p><strong>Fundamental</strong> Principles of Insurance are:</p><h2><span style="color:#333;font-size:small;">1. Principle of Utmost Good Faith</span></h2><br />
<p>Principles of insurance, principle of utmost good faith is given in the diagram below.</p><div class="separator"><p><a href="http://4.bp.blogspot.com/-GxEI9_LNeYQ/U7K5IHk9F0I/AAAAAAAABKM/54emse7H0iQ/s1600/Principle+of+Utmost+Good+Faith.png" imageanchor="1" rel="lightbox-Principles-of-Insurance" title="Principle of Utmost Good Faith"><img class="c1" ad="true" alt="Principle of Utmost Good Faith" border="0" src="http://4.bp.blogspot.com/-GxEI9_LNeYQ/U7K5IHk9F0I/AAAAAAAABKM/54emse7H0iQ/s1600/Principle+of+Utmost+Good+Faith.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 380px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In principles of insurance, principle of utmost good faith is a contract. In this insurance contract, the risk loss of is transferred from insured to the insurer. Consequently, there should be a good trust between the insurer and the insured. The insured must disclose every material fact about the subject matter of the insurance contract in the proposal form of insurance. The full, correct and reliable information must be submitted by the insured. In case of any concealment of fact or false statement, the insurer can declare the contract void, and he will not be liable for paying any compensation.</p><h2><span style="color:#333;font-size:small;">2. Principle of Insurable Interest</span></h2><br />
<p>Principles of insurance, principle of insurable interest is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZlkkryuM2opbtkY6IUqazZXRMbHmcvQEPpOwavkp-r98baiLJNo4_gkoPxrBPAPBdydyoz-MUlLWJjQ-AcOn4Z5asw3AzZyysw-SXuB0IiMoVr6d9UhvtxOqhrIq3dSjvkqueK2d3-1w/s1600/Principle+of+Insurable+Interest.png" imageanchor="1" rel="lightbox-Principles-of-Insurance" title="Principle of Insurable Interest"><img class="c1" ad="true" alt="Principle of Insurable Interest" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZlkkryuM2opbtkY6IUqazZXRMbHmcvQEPpOwavkp-r98baiLJNo4_gkoPxrBPAPBdydyoz-MUlLWJjQ-AcOn4Z5asw3AzZyysw-SXuB0IiMoVr6d9UhvtxOqhrIq3dSjvkqueK2d3-1w/s1600/Principle+of+Insurable+Interest.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 334px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In principles of insurance, principle of insurable interest is a contract. The subject matter of the insurance is the correlation between the insured and insurable interest. In the subject of insurance the insured must have insurable interest. The insured must own a part or whole property. He should be in a such condition that whatever harm happened to his property; he should be held responsible for that. The contract of insurance gets void and termed as invalid in the absence of such interest.</p><p><strong>For example</strong>: If a person owns a house and has insurable interest to the house, to protect it from any possible risk. If the person sells the same house to another person, then the house will not have insurable interest.</p><h2><span style="color:#333;font-size:small;">3. Principle of Indemnity</span></h2><br />
<p>Principles of insurance, principle of indemnity is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRyui69vlQRjQ-Z_O4mvBIhctSwZxDBwFQwck76Ws_F_lIamgrJ381dmE8labTPwBZub_66qlVdJxeml87iTZwwDszFvjwujyvPscXbVodpnjnTftvJb4xGs2rfu-7e_MmMTm3i2YObps/s1600/Principle+of+Indemnity.png" imageanchor="1" rel="lightbox-Principles-of-Insurance" title="Principle of Indemnity"><img class="c1" ad="true" alt="Principle of Indemnity" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhRyui69vlQRjQ-Z_O4mvBIhctSwZxDBwFQwck76Ws_F_lIamgrJ381dmE8labTPwBZub_66qlVdJxeml87iTZwwDszFvjwujyvPscXbVodpnjnTftvJb4xGs2rfu-7e_MmMTm3i2YObps/s1600/Principle+of+Indemnity.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 505px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In principles of insurance, principle of indemnity (security) is not valid to life insurance contract. It is based on other forms of insurance such as marine, accidental and fire. The main <a href="http://articles-junction.blogspot.com/2013/10/what-is-financial-management-objective.html">objective</a> of the general insurance is to bring the person to the same condition to the subject matter as he was before the damage.</p><p>The insurer pays compensation only against the actual loss. Assured is not allowed to make a profit out of the contract of insurance. The compensation cannot be more than the actual loss. Hence double insurance is impossible in general insurance.</p><p>In the principle of indemnity life insurance contract is not applicable, because if the person expires due to injury, then the life of that person is not measureable in terms of money. The person life is precious;; it has many insurable interest to his life.</p><p><strong>Example</strong>: Mr. Ronaldo has three million dollar life insurance policy by his name then he would get the specific amount after his death. Not more than that because Mr. Ronaldo life value cannot be counted in terms of money.</p><h2><span style="color:#333;font-size:small;">4. Principle of Contribution</span></h2><br />
<p>Principles of insurance, principle of contribution is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjShXrXMidLQ6hC21-QjzYwbsMgz9vVU0MdWqrekfE24tqlr2AZLOTF8oZ2_SZJK0WbQIdJdPP6mjAcSPJtiUnoHYxEgn4hDa_E4np2Db5gpTl-u5aIaC2l-Jb9jvb9oGif_opGf8vJQys/s1600/Principle+of+Contribution.png" imageanchor="1" rel="lightbox-Principles-of-Insurance" title="Principle of Contribution"><img class="c1" ad="true" alt="Principle of Contribution" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjShXrXMidLQ6hC21-QjzYwbsMgz9vVU0MdWqrekfE24tqlr2AZLOTF8oZ2_SZJK0WbQIdJdPP6mjAcSPJtiUnoHYxEgn4hDa_E4np2Db5gpTl-u5aIaC2l-Jb9jvb9oGif_opGf8vJQys/s1600/Principle+of+Contribution.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 258px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In principles of insurance, a principle of contribution is the fundamental principle. The principle of indemnity is conclusive to the principle of contribution. Under this principle, the insured has the liberty to claim only on the actual damages from any one insurer or all the other insurers.</p> <p><strong>Example</strong>: If Mr. Bill Gates has the property of 79 billion dollars, if he has insured himself from three companies, State Farm Group 40 billion dollars, All-State Insurance Group 30 billion dollars and from Liberty Mututal Insurance Cos 20 billion dollars. If the loss of actual property is a worth 40 billion dollar, then he can claim only 40 billion dollar from one company that is State Farm Group and not from the other companies.</p><h2><span style="color:#333;font-size:small;">5. Principle of Subrogation</span></h2><br />
<p>Principles of insurance, principle of subrogation is given in the diagram below</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjK_-2LrpPSR6LXtYQvCykC25wvnjY2dIogy_dNqdHSXm2MgjcsIZj3f9GzoKiPw7Tfe9gRwLI6q1VDMYbRVmveresmrgz9oV3KhXY4NBMqGykUCLTa4aR7a9sHXeWcKpv1me54H0VlP8M/s1600/Principle+of+Subrogation.png" imageanchor="1" rel="lightbox-Principles-of-Insurance" title="Principle of Subrogation"><img class="c1" ad="true" alt="Principle of Subrogation" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjK_-2LrpPSR6LXtYQvCykC25wvnjY2dIogy_dNqdHSXm2MgjcsIZj3f9GzoKiPw7Tfe9gRwLI6q1VDMYbRVmveresmrgz9oV3KhXY4NBMqGykUCLTa4aR7a9sHXeWcKpv1me54H0VlP8M/s1600/Principle+of+Subrogation.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 344px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In principles of insurance, a principle of subrogation is the fundamental principle. Principle of indemnity, is the outcome from this principle. Therefore, life insurance is not applicable in this principle. This principle applies in fire and marine insurance. This principle is established to compensate to the loss against the damages of the insure. If the claim is settled by the insurer, then the ownership of that entire property would be of the insurer company. This principle helps the insurer company from to prevent double insurance.</p><p><strong>Example</strong>: If Pepsi company caught fire due to negligence of coco cola company, In this fire accident Pepsi, loss is of 20 billion dollars, then the insurance company has to pay 20 millions dollars to the Pepsi company. However, if the insurance company files a case against coco cola company, if the insurance company wins the case, then coco cola has to pay the entire amount, including case, lawyer expenses. If any amount is balanced with the insurance company, then it would be returned to pepsi.</p><h2><span style="color:#333;font-size:small;">6. Principle of Mitigation of Loss</span></h2><br />
<p>Principles of insurance, principle of mitigation is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgE_a9IBY3QcUkL3M_6Zizv0uSc9KvLwG5ouV5z1zjatlZtgdNZGSAzL6ItLKGaWlzHLK_dE9mf5EJanwhf7Kg7B4HlQrs47YWKKyu9VTlZmqCfnUv5B4IMx2Xmj5C4O9qvNxseBSO8-iI/s1600/Principle+of+Mitigation+of+Loss.png" imageanchor="1" rel="lightbox-Principles-of-Insurance" title="Principle of Mitigation"><img class="c1" ad="true" alt="Principle of Mitigation" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgE_a9IBY3QcUkL3M_6Zizv0uSc9KvLwG5ouV5z1zjatlZtgdNZGSAzL6ItLKGaWlzHLK_dE9mf5EJanwhf7Kg7B4HlQrs47YWKKyu9VTlZmqCfnUv5B4IMx2Xmj5C4O9qvNxseBSO8-iI/s1600/Principle+of+Mitigation+of+Loss.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 232px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In principles of insurance, a principle of mitigation of loss is the fundamental principle. Under this principle, the insured must give his 100% to save his property and not just sit and watch destruction of his property. All tough his property is insured his effort should be there to minimize the losses.</p><h2><span style="color:#333;font-size:small;">7. Principle of causa proxima</span></h2><br />
<p>Principles of insurance, principle of mitigation is given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8rzGlO9j0MaPc7jzQYp6_XlODihoU9hByFbWSM6WYakweZPSmbVXBQ9xJXsrM6fV7EqsdkGdobmO-OYRykSo94WbPA897QGPyFXjUz-p_JPDe3iRJk7DF-iH5yehjtM8n5NtEW9_Cz2M/s1600/Principle+of+causa+proxima.png" imageanchor="1" rel="lightbox-Principles-of-Insurance" title="Principle of causa proxima"><img class="c1" ad="true" alt="Principle of causa proxima" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8rzGlO9j0MaPc7jzQYp6_XlODihoU9hByFbWSM6WYakweZPSmbVXBQ9xJXsrM6fV7EqsdkGdobmO-OYRykSo94WbPA897QGPyFXjUz-p_JPDe3iRJk7DF-iH5yehjtM8n5NtEW9_Cz2M/s1600/Principle+of+causa+proxima.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 235px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>In principles of insurance, a principle of Principle of causa proxima is the fundamental principle. This principle consists of, to find one or more reasons for the cause, and the nearest cause should be taken into account to decide the liability of the insurer.</p><p><strong>Example</strong>: A trawler vessel was insured against losses resulting from collision. Co-incidentally a trawler vessel gets to collide, which result in further delay for few days. Because of this delay, the banana on the trawler vessel got putrid and was unsuitable for consumption. Hence there are two reasons for the losses one is of collision and other is delay, the closest cause of putrid banana was delay. As the trawler vessel was insured only for collision and not for the delay, so for putrid bananas the insured will not get any compensation from the insurance company. But trawler vessel will get compensation for collision.</p><h2><span style="color:#333;font-size:small;">Some important articles on insurance policies are given below.</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2014/06/what-is-insurance-meaning-definition-of.html">What is Insurance? Meaning, Definition of Insurance</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-life-insurance-policies-life.html">Types of Life Insurance Policies Life Insurance Definition Meaning</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-fire-insurance-polices-meaning.html">Types of Fire Insurance Polices - Meaning and Definition of Fire Insurance</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-marine-insurance-policies.html">Types of Marine Insurance Policies - Importance, Conditions of Marine Insurance policies</a></p><br />
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Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com2tag:blogger.com,1999:blog-8295104352019308349.post-68576082885274891532014-06-29T13:14:00.002-06:002014-07-08T05:25:30.599-06:00What is Insurance? Meaning, Definition of Insurance<h2><span style="color:#333;font-size:small;">What is Insurance?</span></h2><br />
<p>What is Insurance are given in the diagram below.↓</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgn8InlMQuw_2KHwPU49vAeaYoVtAmePp2bO1dwGwipcNDeeLsmNtRPoHAvGOUeFlWN4XQqLJANEWjPA6dUA-F_OuRE2L-GruOViH71Gon4C89ge1GJ0_oUfAxzBYVZLjS5BSmTV8LZFQY/s1600/What+is+Insurance.png" imageanchor="1" rel="lightbox-What-is-Insurance" title="What is Insurance"><img class="c1" ad="true" alt="What is Insurance" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgn8InlMQuw_2KHwPU49vAeaYoVtAmePp2bO1dwGwipcNDeeLsmNtRPoHAvGOUeFlWN4XQqLJANEWjPA6dUA-F_OuRE2L-GruOViH71Gon4C89ge1GJ0_oUfAxzBYVZLjS5BSmTV8LZFQY/s1600/What+is+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 384px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Risk is involved in all aspects of life and <a href="http://articles-junction.blogspot.com/2013/07/what-is-green-business-guidelines-to.html">business</a>. In Human being risk involved are losses of earning member in the family or his disability or loss of job, or loss of property due to natural or human calamities, e.g. robbery, theft, floods, cyclones, fire, etc. In business risks involve are variations in prices, natural risks, behind time transport risks, shortage of raw material risk, risk of late payments of goods, etc. Every businessman should adopt particular measures to minimize or to reduce the possibility of risks. He should save a specific amount of <a href="http://articles-junction.blogspot.com/2013/10/shareholders-wealth-maximization.html">profit</a> every year from his business to secure himself, by entering into an insurance contract. <a href="http://articles-junction.blogspot.com/2014/07/principles-of-insurance-basic.html">Insurance</a> covers the risk, but it does not prevent the risk. Insurance is really an element of business, without it, no vehicle of transport, in sea or land or in the air is allowed to move, nothing built and no wheel turns. Every wise businessman secures himself to <a href="http://articles-junction.blogspot.com/2014/07/types-of-life-insurance-policies-life.html">insurance</a>.</p><a name='more'></a><br />
<h2><span style="color:#333;font-size:small;">Meaning of Insurance</span></h2><br />
<p>Meaning of <a href="http://articles-junction.blogspot.com/2014/07/types-of-fire-insurance-polices-meaning.html">Insurance</a> is given in the diagram below.↓</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOFiQFmOyK2UZ0RNhAoMdEkVaeMHJWRW9pbOJq4X_ozYq_DclBZ2sw0rv_zFQJoZZ7mVtihqeNI6X-p4Mh68mFjQdkZYwWcdbVOLp_EO1gwrgIVxnIKuWfzcfpDRd2OB8vAmePRR1eJK0/s1600/Meaning+of+Insurance.png" imageanchor="1" rel="lightbox-What-is-Insurance" title="Meaning of Insurance"><img class="c1" ad="true" alt="Meaning of Insurance" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOFiQFmOyK2UZ0RNhAoMdEkVaeMHJWRW9pbOJq4X_ozYq_DclBZ2sw0rv_zFQJoZZ7mVtihqeNI6X-p4Mh68mFjQdkZYwWcdbVOLp_EO1gwrgIVxnIKuWfzcfpDRd2OB8vAmePRR1eJK0/s1600/Meaning+of+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 290px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-marine-insurance-policies.html">Insurance</a> is a contract entered between two parties, i.e. the company assuring in the contract of insurance to compensate is known as insurer / assurer. While the person to whom such assurance is given is known as insured / assured. In this contract, the insurer is liable to compensate for the specific loss to the insured who has paid regular consideration, i.e. an insurance premium.</p><h2><span style="color:#333;font-size:small;">Definition of Insurance</span></h2><br />
<p>According to Insurance Act of 1938, Insurance is <strong>defined</strong> as follows: ↓</p><blockquote>“Insurance is defined as "A provision which prudent man makes against inevitable contingencies”.</blockquote><p><p>Definition of Insurance are given in the diagram below.↓</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifDZCF-VmfHfj9Hy9L6mZXQ5CMYFhlAQZUQUTuinWaNRua6YdgeSyPWroJiPkrOYwSYSY7lZtj1rFrlQb6xsBjohA5ifZyS3GRj6Kz6CNZbUlFxOQwvsdTU8JRIqg3VV_zgkMjPGe6vHM/s1600/Definition+of+Insurance.png" imageanchor="1" rel="lightbox-What-is-Insurance" title="Definition of Insurance"><img class="c1" ad="true" alt="Definition of Insurance" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifDZCF-VmfHfj9Hy9L6mZXQ5CMYFhlAQZUQUTuinWaNRua6YdgeSyPWroJiPkrOYwSYSY7lZtj1rFrlQb6xsBjohA5ifZyS3GRj6Kz6CNZbUlFxOQwvsdTU8JRIqg3VV_zgkMjPGe6vHM/s1600/Definition+of+Insurance.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 565px;" /></a></p></div><p>Image credits © Manoj Patil.</p><p>Definition of Insurance is follows:</p><ol type="1"><li>Proposal,</li><li>Insurance Policy,</li><li>Insurer,</li><li>Insured,</li>
<li>Premium,</li><li>Risk,</li><li>Subject matter of insurance,</li>
<li>Claim,</li></ol><p>Definition of Insurance are:</p><ol><li><strong>Proposal</strong>: It is a written request by the proposer (insured) to the insurance company to issue insurance policy.</li>
<li><strong>Insurance Policy</strong>: This is the document containing the terms & conditions of contract of insurance.</li>
<li><strong>Insurer</strong>: The <a href="http://articles-junction.blogspot.com/2013/07/advantages-and-disadvantages-of.html">organization</a> which agrees to pay money for compensating the losses is call insurer or assurer.</li>
<li><strong>Insured</strong>: The person who is insured is called the insured or the assured.</li>
<li><strong>Premium</strong>: The regular consideration paid by the insured to insurer.</li>
<li><strong>Risk</strong>: Happening of a contingency against which insurance is affected.</li>
<li><strong>Subject matter of insurance</strong>: It refers to the subject against which the policy is taken.</li>
<ul><li>In Life Insurance, the life of the assured is a subject matter.</li>
<li>In Fire Insurance, the goods and assets or property of the insured is the subject matter.</li>
<li>In Marine Insurance, the cargo or ship is the subject matter.</li></ul><li><strong>Claim</strong>: It is the demand made by the insured on the insurer to compensate for loss on happening of the event.</li>
</ol><h2><span style="color:#333;font-size:small;">Some important articles on insurance policies are given below.</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2014/07/principles-of-insurance-basic.html">Principles of Insurance - Basic Principles of Insurance - Diagram</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-life-insurance-policies-life.html">Types of Life Insurance Policies Life Insurance Definition Meaning</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-fire-insurance-polices-meaning.html">Types of Fire Insurance Polices - Meaning and Definition of Fire Insurance</a></p><p><a href="http://articles-junction.blogspot.com/2014/07/types-of-marine-insurance-policies.html">Types of Marine Insurance Policies - Importance, Conditions of Marine Insurance policies</a></p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-41954026967536415572014-06-24T12:57:00.001-06:002014-06-24T12:57:35.705-06:00Factors Affecting Capital Structure of a Firm with Diagram<h2><span style="color:#333;font-size:small;">Factors Affecting Capital Structure of a Company</span></h2><br />
<p>Factors affecting a <strong>firm's</strong> choice of <a href="http://articles-junction.blogspot.com/2013/10/what-is-capital-structure-definition-of.html">capital structure</a> are given in the diagram below: ↓</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghYlc7V1n23UbkEj4F089y48QE_qcXvFTqO1S_9ONsOfgyih-lBf6t5qjBW-Ni0JA3uSJDJZE35DypdoFnHgaGcBNv7IIsl8msmiMPyD79zZvBmsPYXCfHC6e2bv_JwyLFcOUsI9N-Hmk/s1600/Factors+Affecting+Capital+Structure+of+a+company.png" imageanchor="1" rel="lightbox-Factors-Affecting-Capital-Structure-of-a-Company" title="Factors Affecting Capital Structure of a Company"><img class="c1" ad="true" alt="Factors Affecting Capital Structure of a Company" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghYlc7V1n23UbkEj4F089y48QE_qcXvFTqO1S_9ONsOfgyih-lBf6t5qjBW-Ni0JA3uSJDJZE35DypdoFnHgaGcBNv7IIsl8msmiMPyD79zZvBmsPYXCfHC6e2bv_JwyLFcOUsI9N-Hmk/s1600/Factors+Affecting+Capital+Structure+of+a+company.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 658px;" /></a></p></div><p>Image credits © Manoj Patil.<a name='more'></a></p><p>Factors <strong>influencing</strong> <a href="http://articles-junction.blogspot.com/2013/10/components-of-capital-structure-with.html">capital structure</a> of a firm are follows:</p><ol><li>Trading on Equity</li><li>Desire to Retain Control</li><li>Size of Company</li><li>Nature of <a href="http://articles-junction.blogspot.com/2013/07/need-and-importance-of-communication-in.html">Business</a></li><li>Amount of <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">capital</a> Required</li><li>Cost of Financing</li><li>Growth Rate</li>
<li>Period of Finance</li><li>Flexibility</li><li>Profitability</li><li>Timing</li><li>Taxes</li><li>Attitude of Lenders</li><li>Purpose of Financing</li></ol><p><a href="http://articles-junction.blogspot.com/2013/07/five-main-factors-influencing-growth-of.html">Factors influencing</a> <a href="http://articles-junction.blogspot.com/2013/10/policies-of-capital-structure-with.html">capital structure</a> of a <strong>company</strong> are follows:</p><h2><span style="color:#333;font-size:small;">1. Trading on Equity </span></h2><br />
<p><strong>Important</strong> Factors affecting capital structure of a company are trading on equity. Trading on equity are the arrangement made to the enterprise to use borrowed <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-primary.html">funds</a>. These borrowed funds carrying a fixed rate of interest. They are planned in such a way to increase the rate of return on equity shares. Since the preference and debentures carry a fixed return, the companies will operate with a low equity base and borrow more funds, by the way, of external borrowings.</p><h2><span style="color:#333;font-size:small;">2. Desire to Retain Control</span></h2><br />
<p>The <strong>main</strong> factors that are affecting capital structure of a company are desire to retain control. The promoters may desire to retain a substantial control over the management within the company. The promoters may seek more of debt financing rather than issuing <a href="http://articles-junction.blogspot.com/2013/10/shareholders-wealth-maximization.html">shares</a> to the public. The debt financing rather consists of debentures, preference shares as such shares do not have normal voting rights.</p><h2><span style="color:#333;font-size:small;">3. Size of Company</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/07/eight-main-factors-influencing-location.html">Factors influencing</a> a capital structure of the company are size of the firm. Small companies depend more on owned funds rather borrowed funds. As it finds difficult to obtain long-term loans from <a href="http://articles-junction.blogspot.com/2013/09/indian-financial-system-and.html">financial</a> institutions and banks due to lack of adequate security.</p><h2><span style="color:#333;font-size:small;">4. Nature of Business</span></h2><br />
<p>Factors affecting capital structure of a company is nature of business. Companies which are assured of stability, and growth may go for borrowed capital funds as they can pay interest regularly. If the company is of cyclical in nature, then it may go for equity capital than debt financing.</p><h2><span style="color:#333;font-size:small;">5. Amount of Capital Required </span></h2><br />
<p>Factors affecting capital structure of a company is the amount of capital required by the firm. If the amount of capital required is less, it can be collected from equity shareholders or by way of borrowed funds. However, if the funds required are large, then the company has to attract different types of investors.</p><h2><span style="color:#333;font-size:small;">6. Cost of Financing</span></h2><br />
<p>Factors affecting capital structure of a company is the cost of financing. The company must collect funds at the lowest possible cost. Generally, the cost of collecting money through debentures and bonds is relatively less as compared to the cost of collecting funds by Equity.</p><h2><span style="color:#333;font-size:small;">7. Growth Rate</span></h2><br />
<p>Factors affecting capital structure of a company are the growth rate of finance. The financial requirements of growing firms are high and cannot be met from internal sources. The financial requirements of growing firms are high and cannot be met from internal sources. They have to depend heavily on external financing. Thus, such firms rely more on debt capital.</p><h2><span style="color:#333;font-size:small;">8. Period of Finance</span></h2><br />
<p>Factors affecting capital structure of a company are the term of finance. If the funds are required for a short period, the company may rely on debentures and fixed deposits. However, if the funds are required for a long period, then the company can go for equity capital.</p><h2><span style="color:#333;font-size:small;">9. Flexibility</span></h2><br />
<p>Factors affecting capital structure of a company are flexibility within the firm. If the firm has an ability to raise capital from any source, then it would be advisable to go for borrowed funds rather than more equity. However, the firm must be able to pay interest and installments on time.</p><h2><span style="color:#333;font-size:small;">10. Profitability</span></h2><br />
<p>Factors affecting capital structure of a company are profitability to the firm. Firms which are highly profitable use little debt as their fund's requirement can be met from internally generated funds or by retained earnings. </p><h2><span style="color:#333;font-size:small;">11. Timing</span></h2><br />
<p>Factors affecting capital structure of a company are timings. Capital Markets go through a cyclical pattern, i.e. boom, recession and recovery. During boom period, investors prefer equity. There are chances of collecting equity at a premium. During recession, investors are not inclined towards equity; they prefer debentures and fixed deposits.</p><h2><span style="color:#333;font-size:small;">12. Taxes</span></h2><br />
<p>Factors affecting capital structure of a company are taxes laid on the firm.</p><h2><span style="color:#333;font-size:small;">13. Attitude of Lenders</span></h2><br />
<p>Factors affecting capital structure of a company are taxes laid on the firm. The interest on debt-capital is a tax-deductible expense, whereas dividend payment is not so. hence, higher the tax rate, greater the incentives to employ debt capital.</p><h2><span style="color:#333;font-size:small;">14. Purpose of Financing</span></h2><br />
<p>Factors affecting capital structure of a company are the purpose of financing. If the funds are required for purchasing new machinery, then the company may raise money through debentures or term loans, as the company may be able to pay interest on debentures out of profits generated due to use of machinery.</p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-89741708080912807552013-10-15T12:20:00.000-06:002014-06-24T13:12:56.714-06:00Policies of Capital Structure with Diagram<h2><span style="color:#333;font-size:small;">Policies of Capital Structure</span></h2><br />
<p>All companies have their own policies of <a href="http://articles-junction.blogspot.com/2013/10/what-is-capital-structure-definition-of.html">capital structure</a>. Capital structure is a mix or combination of debt and equity. The debt-equity ratio is maintained at various levels.</p><p>The information content of <strong>dividend</strong> and <a href="http://articles-junction.blogspot.com/2013/10/components-of-capital-structure-with.html">capital structure</a> policies are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUmQy5azP0xYnDzaDKEo39mcZtc692227imLr0GFi8Jx-V5iscqoCqGjFFBzz4XZ1T_qpoN6yweobOlbJsM8f1OyBgBPOVIAhrZ3zcTtV9w3jaRi0hjrQAwoVkxKOcDBwWs0ozyw95BWk/s1600/Policies+of+Capital+Structure.png" imageanchor="1" rel="lightbox-Policies-of-Capital-Structure" title="Policies of Capital Structure"><img class="c1" ad="true" alt="Policies of Capital Structure" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgUmQy5azP0xYnDzaDKEo39mcZtc692227imLr0GFi8Jx-V5iscqoCqGjFFBzz4XZ1T_qpoN6yweobOlbJsM8f1OyBgBPOVIAhrZ3zcTtV9w3jaRi0hjrQAwoVkxKOcDBwWs0ozyw95BWk/s1600/Policies+of+Capital+Structure.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 485px;" /></a></p></div><p>Image credits © Manoj Patil.</p><a name='more'></a><p><strong>Relevance</strong> of <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">capital</a> structure are</p><ol><li>No Debt Policy</li><li>Limited Debt Policy</li><li>Debt-Equity Ratio 1:1 Policy</li><li>Debt-Equity Ratio 2:1 Policy</li><li>Maximum Possible Debt Policy</li></ol><p><strong>Policies</strong> of capital structure are follows:</p><h2><span style="color:#333;font-size:small;">1. No Debt Policy</span></h2><br />
<p>In policies of <a href="http://articles-junction.blogspot.com/2014/06/factors-affecting-capital-structure-of.html">capital structure</a>, some firms adopt zero debt policy. The entire capital is raised by <a href="http://articles-junction.blogspot.com/2013/10/problems-and-indications-of.html">Shareholder's</a> funds. Such firms have large retained earnings, and they expand with the help of retained earnings. Some firms do not want to expand their business as they are happy with their present size. So, they use 'Stability Strategy'. If they ever need more <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-primary.html">funds</a>, they do disinvestment. They sell part of their business to raise funds and do not borrow from outside.</p><h2><span style="color:#333;font-size:small;">2. Limited Debt Policy</span></h2><br />
<p>In policies of capital structure, some firms use a limited debt policy. They borrow very least from outside. The debt-equity ratio is less than 1:1. They are similar to No debt policy. They may have retained earnings, which are used for expansion and modernization. Such firms opt, for restricted growth strategy, and thus they may require limited additional funds for expansion.</p><h2><span style="color:#333;font-size:small;">3. Debt-Equity Ratio 1:1 Policy </span></h2><br />
<p>In policies of capital structure, firms which try to avoid the high-interest burden may adopt debt-equity ratio 1:1 policy of capital structure. For expansion such firms may use retained earnings or may issue additional shares.Firms which adopt moderate growth strategy may adopt this policy. The firms may resort to debt only to the extent of <a href="http://articles-junction.blogspot.com/2013/10/shareholders-wealth-maximization.html">shareholder's</a> equity.</p><h2><span style="color:#333;font-size:small;">4. Debt-Equity Ratio 2:1 Policy </span></h2><br />
<p>In policies of capital structure, many firms adopt this policy. In this policy, the firms borrow 2 times as that of equity capital. For expansion, such firms borrow more funds by way of loans. They do not raise more funds from <a href="http://articles-junction.blogspot.com/2013/09/process-of-initial-public-offering-ipo.html">shareholders</a>. Firms adopting this policy may choose internal and external growth strategies.</p><h2><span style="color:#333;font-size:small;">5. Maximum Possible Debt Policy</span></h2><br />
<p>In policies of capital structure, the debt-equity ratio is more than 2:1. Small medium enterprises are allowed debt-equity ratio of greater than 2:1. E.g.:Under composite Loan Scheme for small industries the debt-equity ratio can be 3:1. This policy is not adopted by large firms.</p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-42957913352309137592013-10-13T15:08:00.000-06:002014-06-24T13:11:02.126-06:00Components of Capital Structure with Diagram<h2><span style="color:#333;font-size:small;">Components of Capital Structure</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/10/what-is-capital-structure-definition-of.html">Capital structure</a> involves different sources from which the required long-term capital is collected by the company. It differs from <a href="http://articles-junction.blogspot.com/2013/09/indian-financial-system-and.html">financial structure</a>.</p><p><strong>Cost</strong> components of <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">capital</a> structure are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrx-Y0v9ClwwVKhdeqPH2BnE8H85DYZUYLdM1YKyqG_4VsTDX64z4HgvEl0XdBhD-LVDUXaNLlFivOxI5TB_EDdFt6mMcAs09USPF44h-ZlexG1dpSPU8VQa0yVMzdy98b4yUe6A3pTdQ/s1600/Components+of+Capital+Structure.png" imageanchor="1" rel="lightbox-Components-of-Capital-Structure" title="Components of Capital Structure"><img class="c1" ad="true" alt="Components of Capital Structure" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrx-Y0v9ClwwVKhdeqPH2BnE8H85DYZUYLdM1YKyqG_4VsTDX64z4HgvEl0XdBhD-LVDUXaNLlFivOxI5TB_EDdFt6mMcAs09USPF44h-ZlexG1dpSPU8VQa0yVMzdy98b4yUe6A3pTdQ/s1600/Components+of+Capital+Structure.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 267px;" /></a></p></div><p>Image credits © Manoj Patil.</p><a name='more'></a><br />
<p><strong>Optimal</strong> <a href="http://articles-junction.blogspot.com/2013/10/policies-of-capital-structure-with.html">capital structure</a> are follows:</p><p><strong><a href="http://articles-junction.blogspot.com/2013/10/shareholders-wealth-maximization.html">Shareholder's Funds</a></strong> (owned capital)</p><ol><li>Equity Capital</li><li>Preference Capital</li><li>Retained Earnings</li>
</ol><p><strong>Borrowed Funds</strong></p><ol><li>Debentures</li><li>Term Loans</li><li>Deposits</li></ol><p><strong>Determinants</strong> of capital structure are discuss in brief:</p><h2><span style="color:#333;font-size:small;">Shareholder's Funds (Owned Capital)</span></h2><br />
<p>In components of capital structure, <a href="http://articles-junction.blogspot.com/2013/10/problems-and-indications-of.html">shareholder's</a> funds (owned capital) means funds provided or contributed by the owners. It is also known as owned capital or ownership capital. Various constituents of owned capital are:</p><h2><span style="color:#333;font-size:small;">1. Equity Capital</span></h2><br />
<p>In components of <a href="http://articles-junction.blogspot.com/2014/06/factors-affecting-capital-structure-of.html">Capital structure</a>, equity share capital represents the ownership capital of the company. It is the permanent capital and cannot be withdrawn during the lifetime of the company. They are the real <a href="http://articles-junction.blogspot.com/2013/10/concept-of-risk-and-return-with-diagram.html">risk</a> bearers, but they also enjoy rewards. Their liability is restricted to their capital contributed. Equity shares are popular among the investing class. “Equity Capital is also known as 'Owned Capital' or 'Risk Capital' or 'Venture Capital.'”</p><h2><span style="color:#333;font-size:small;">2. Preference Capital</span></h2><br />
<p>In components of capital structure, preference shareholders are also owners of the firm, and they get preference regarding payment of dividends and repayment of Capital. They are cautious investors. Preference Shares carry a stipulated dividend. Preference Shares are of different types such as:</p><ul><li>Redeemable and Non-Redeemable, </li><li>Convertible and Non-Convertible,</li><li>Cumulative and Non-Cumulative preference shares.</li></ul><h2><span style="color:#333;font-size:small;">3. Retained Earnings</span></h2><br />
<p>In components of capital structure, instead of distributing all the profits to shareholders by way of a dividend, the firm retains / keeps / saves a part of the profit for self-financing. Retained earnings constitute the sum total of those profits which have been realized over the years and have been reinvested in the business. Thus, it is also known as self-financing or ploughing back of profits. Thus, it is also known as self-financing or working back of profits.</p><h2><span style="color:#333;font-size:small;">Borrowed Capital</span></h2><br />
<p>Borrowed capital is the amount raised by way of loans or credit. Various parts of borrowed capital are:</p><h2><span style="color:#333;font-size:small;">1. Debentures</span></h2><br />
<p>In components of capital structure, debenture capital is a part of borrowed capital. The creditors of the company are the debenture holders. Different types of debentures are issued for the convenience of investors.</p><h2><span style="color:#333;font-size:small;">2. Term Loan</span></h2><br />
<p>In components of capital structure, organizations can obtain long-term and medium term loans from banks and financial institutions. Further, banks advance loans in US dollar. Term loans are repayable by installments. For obtaining term loans, collateral security has to be offered by the organization.</p><h2><span style="color:#333;font-size:small;">3. Public Deposits </span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/09/process-of-initial-public-offering-ipo.html">Public</a> deposit means any money received by a non-banking company by way of deposit or loan from the public, including employees, customers and shareholders of the company other than in the form of shares and debentures. Companies prefer this method as such deposits are unsecured. A company can accept public deposits for a period of up to 3 years.</p><br />
Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-39182464609330347192013-10-11T14:13:00.000-06:002014-06-24T13:08:08.749-06:00What is Capital Structure, Definition of Capital Structure<h2><span style="color:#333;font-size:small;">Define Capital Structure, Meaning of of Capital Structure</span></h2><br />
<p><a href="http://articles-junction.blogspot.com/2013/10/components-of-capital-structure-with.html">Capital Structure</a> relates to the combination of sources from which long term funds are required to <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-primary.html">raise</a> the business. In other words, it means the composition of the firm's long term funds comprising of equity, preference and long-term loans.</p><p>According to Gerstenberg, the <strong>definition</strong> of <a href="http://articles-junction.blogspot.com/2014/06/factors-affecting-capital-structure-of.html">capital structure</a> follows: ↓</p><blockquote>“Capital Structure of a company refers to make-up of its Capitalization”.</blockquote><p><a href="http://articles-junction.blogspot.com/2013/10/components-of-capital-structure-with.html">Capital Structure</a> also suggests the ratio between owned capital and borrowed capital. While planning the capital structure, proper balance between debt and equity is essential. There is no hard and fast rule in deciding the composition of capital structure. The company can go only for equity <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">capital</a> or the company may decide a certain ratio between equity and loan capital. It is always advisable to have a certain ratio between owned funds and borrowed funds.</p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com0tag:blogger.com,1999:blog-8295104352019308349.post-81362255381616856512013-10-08T13:34:00.000-06:002013-10-08T13:34:00.327-06:00Concept of Risk and Return with Diagram <h2><span style="color:#333;font-size:small;">Concept of Risk and Return</span></h2><br />
<p>Concept of <a href="http://articles-junction.blogspot.com/2013/10/problems-and-indications-of.html">Risk</a> and <a href="http://articles-junction.blogspot.com/2013/10/shareholders-wealth-maximization.html">Return</a> in <strong>financial investment</strong>, <strong><a href="http://articles-junction.blogspot.com/2013/10/function-of-finance-department-with.html">finance</a></strong>, <strong>investment</strong>, <strong>securities</strong>, <strong>analysis</strong> are given in the diagram below.</p><div class="separator"><p><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7AxxaxcgcBuSSyequ9-u5zX40vwrkoqLRDs2uo2FsiKJ2Gsu762ynRl0JL1Epd8ewoYrX-_mFuu7DZezr5PVU_As1QehIRjlvo6U8-zxLuwoYM3Zei14Tv3pqwW9Wwl_VeWfaNwy4K5M/s1600/Concept+of+Risk+and+Return.png" imageanchor="1" rel="lightbox-Concept-of-Risk-and-Return" title="Concept of Risk and Return"><img class="c1" ad="true" alt="Concept of Risk and Return" border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi7AxxaxcgcBuSSyequ9-u5zX40vwrkoqLRDs2uo2FsiKJ2Gsu762ynRl0JL1Epd8ewoYrX-_mFuu7DZezr5PVU_As1QehIRjlvo6U8-zxLuwoYM3Zei14Tv3pqwW9Wwl_VeWfaNwy4K5M/s1600/Concept+of+Risk+and+Return.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 425px;" /></a></p></div><p>Image credits © Manoj Patil.</p><a name='more'></a><h2><span style="color:#333;font-size:small;">Risk</span></h2><br />
<p>In concept of risk and return, every <a href="http://articles-junction.blogspot.com/2013/10/functions-of-financial-management.html">financial</a> decision involves risk. In <a href="http://articles-junction.blogspot.com/2013/10/what-is-financial-management-objective.html">financial management</a>, the risk is defined as “the variability of expected returns from an investment”. Risk in investment from investor's view implies that the actual return may not be as expected. From the point of view of a firm, when the actual return is not same as estimated, it is considered as risk. Higher the variations in results, higher is the risk and vice-versa.</p><h2><span style="color:#333;font-size:small;">Types of Risks that Involved in Investments</span></h2><br />
<p>Types of risks that involved in investments are given in the diagram below.</p><div class="separator"><p><a href="http://2.bp.blogspot.com/-IpjBKyT1lAg/UlRW92sA1zI/AAAAAAAABFU/xHuteYHW0Ho/s1600/Types+of+Risks+that+Involved+in+Investments.png" imageanchor="1" rel="lightbox-Concept-of-Risk-and-Return" title="Types of Risks that Involved in Investments"><img class="c1" ad="true" alt="Types of Risks that Involved in Investments" border="0" src="http://2.bp.blogspot.com/-IpjBKyT1lAg/UlRW92sA1zI/AAAAAAAABFU/xHuteYHW0Ho/s1600/Types+of+Risks+that+Involved+in+Investments.png" style="cursor: pointer; display: block; margin: 0px auto 10px; text-align: center; width: 420px; height: 325px;" /></a></p></div><p>Image credits © Manoj Patil.</p><ol><li><a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-capital.html">Capital</a> Risk</li>
<li>Income Risk</li><li>Default Risk</li></ol><h2><span style="color:#333;font-size:small;">Capital Risk</span></h2><br />
<p>It refers to a capital loss because of fall in the the <a href="http://articles-junction.blogspot.com/2013/09/what-is-stock-market-features-of-stock.html">market</a> price of a security like Equity Shares.</p><h2><span style="color:#333;font-size:small;">Income Risk</span></h2><br />
<p>It refers to variations in return from a security. For E.g. In case of Equity Shares dividends vary every year.</p><h2><span style="color:#333;font-size:small;">Default Risk</span></h2><br />
<p>It refers to default in payment of interest or repayment of the principal amount by the company.</p><p>The element of risk varies with the type of investment. For E.g.: Business Portfolio risks, Financial risks, Legal and Statutory risks, Internal <a href="http://articles-junction.blogspot.com/2013/09/process-of-initial-public-offering-ipo.html">process</a> risks, Social, political and economic risks.</p><h2><span style="color:#333;font-size:small;">Return</span></h2><br />
<p>In concept of risk and return, return means “the motivating force and the principal reward in the investment process.” Return can be realized or expected.</p><p>In concept of risk and return, realized return refers to the return which was earned or could have been earned. Expected return refers to the return which the investor expected to earn in the future. The return is calculated as a percentage on the initial amount invested.</p><p>In concept of risk and return, Returns always comes in the given forms:</p><ol><li>In concept of risk and return, the investor should get proper and regular payment of interest on a dividend.</li><li>In concept of risk and return, the investor should get safety on the investment that he has invested.</li>
<li>In concept of risk and return, there must be hassle-free deals should be available to the investor in buying and selling of his investment.</li>
<li>In concept of risk and return, the investor should get liquidity on their investment. </li><li>In concept of risk and return, there are possibilities of <a href="http://articles-junction.blogspot.com/2013/09/methods-of-raising-funds-from-primary.html">fund's</a> appreciation.</li></ol><h2><span style="color:#333;font-size:small;">Concept of Risk and Return Example</span></h2><br />
<p>Examples on Concept of risk and return are follows:</p><p>In concept of risk and return, the simple investment management rule is that higher the risk, greater should be the return and vice versa For E.g.: Low risk instruments like small savings bring low returns. High-risk securities like equity shares, bring higher returns.</p>Articles Junction Bloghttp://www.blogger.com/profile/15581960973978708872noreply@blogger.com1