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At this place students find the answer of their professional course syllabus. We have find lots of issues related to their exams in an easy language.

Professional Shiksha is for all Professional student. We are working on every aspect of theoritcal work of those student gradually and very soon they will get most out of their syllabus.

Thursday 27 July 2017

Sole Proprietorship

A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. Some formal definitions of a sole proprietorship are "a business owned by one person who is entitled to all of its profits" (Glos & Baker) and "a business owned and controlled by one man even though he may have many other persons working for him" (Reed & Conover).
The individual entrepreneur owns the business and is fully responsible for all its debts and legal liabilities. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor, and all debts of the business are the proprietor's. This means that the owner has no less liability than if they were acting as an individual instead of as a business. It is a "sole" proprietorship in contrast with partnerships. More than 75% of all United States businesses are sole proprietorship. Examples include writers and consultants, local restaurants and shops, and home-based businesses.



A sole proprietor may use a trade name or business name other than his or her legal name. In many jurisdictions, there are rules to enable the true owner of a business name to be ascertained. In the United States, there is generally a requirement to file a doing business as statement with the local authorities. In the United Kingdom, the proprietor's name must be displayed on business stationery, in business emails, and at business premises, and there are other requirements.
KEY POINTS
·         In a sole proprietorship, there is no legal distinction between the individual and the business. Thus, every asset is owned by the proprietor, and they have unlimited liability.
·         Examples include writers and consultants, local restaurants and shops, and home-based businesses.
·         A sole proprietor may use a trade name or business name other than his or her legal name.
EXAMPLE
·         An example of a sole proprietorship is an individual who runs a local food truck and would be listed as such with the city.


Advantages of Sole Proprietorship

The sole proprietor form of business ownership is the most common form in the United States and also the simplest. In this form of business ownership, an individual proprietor owns the business, manages the business, and is responsible for all of the business' transactions and financial liabilities. This means that any debts incurred must be paid by the owner. This form of business has several advantages.

1.   Quicker Tax Preparation

As a sole proprietor, filing your taxes is generally easier than a corporation. Simply file an individual income tax return (IRS Form 1040), including your business losses and profits. Your individual and business incomes are considered the same and self-employed tax implications will apply.

2.   Lower Start-up Costs

Limited capital is a reality for many start-ups and small businesses. The cost of setting up and operating a corporation involves higher set-up fees and special forms. It's also not uncommon for a lawyer to be involved in forming a corporation.

3.   Ease of Money Handling

Handling money for the business is easier than other legal business structures. No payroll set-up is required to pay yourself. To make it even easier, set up a separate bank account to keep your business funds separate and avoid co-mingling personal and business activities.

4.   Government Regulation

Sole proprietorships also have the least government rules and regulations affecting it. They do need to comply with licensing requirements within the states in which they do business and they do need to pay attention to local regulations. However, the paperwork required is much less than large corporations. Thus, they can operate quite easily. Sole proprietorships also do not pay corporate taxes.

5.   Sale and Inheritance

The sole proprietor can own the business for as long as he or she decides, and can cash in and sell the business when they decide to get out. The sole proprietor can even pass the business down to their heir, a common practice.

Disadvantages:
The main disadvantages to being a sole proprietorship are:

1.       Unlimited liability: Your small business, in the form of a sole proprietorship, is personally liable for all debts and actions of the company. Unlike a corporation or an LLC, your business doesn't exist as a separate legal entity. Therefore, all of your personal wealth and assets are linked to the business. For instance, if you go bankrupt and owe your debtors $100,000, then that money will have to come out of your own wallet even if there is no money left in the business. If you operate in a higher risk business, such as manufacturing or consumables, the cost to benefit ratio is favorable toward a corporate structure.
1.       Lack of financial controls: The looser structure of a proprietorship won't require financial statements and maintaining company minutes as a corporation. The lack of accounting controls can result in the owner being lax about financial matters, perhaps falling behind in payments or not getting paid on time. It can be a serious issue if financial controls are not strictly managed.
2.      Difficulty in raising capital: Imagine your business in five years. Will it still be a business of one? Growing your small business will require cash to take advantage of new markets and more opportunities. An unrelated investor has less peace of mind concerning the use and security of his or her investment and the investment is more difficult to formalize; other types of business entities have more documentation. Outside investors will take your company more serious if you are a corporation.



Monday 24 July 2017

Strategic Planning Process

Essential steps involved in strategic planning process are:
  • 1.      Getting ready/determine the strategic intent
  • 2.      Define organizational mission
  • 3.      Assessing the situation/analyzing environment
  • 4.      Developing strategies, goals and objectives/strategy formulation
  • 5.      Implement plans/strategy implementation and
  • 6.      Strategy evaluation/monitoring outcomes!

The strategic planning process is a brief description of the steps in the process. These steps are a recommendation, but not the recipe for creating a strategic plan. However, the steps outlined below describe the basic work that needs to be done and the typical products of the process.
1. Getting Ready/Determine the Strategic Intent:
In order to start the strategic planning process in the organization, the basic concept of strategic planning has to be understood by the organization itself, while a number of issues must be addressed in assessing readiness, the determination essentially comes down to whether an organization’s leaders are truly committed to the effort, and whether they are able to devote the necessary attention and resources.
This may also be referred as the strategic intent that would determine what an organization ultimately wants to be and do. An organization that, determined, it is indeed ready to begin strategic planning process.
2. Define Organizational Mission:
A mission statement defines the core purpose the organization-why it exists. The mission examines the “raison d’être” for the organization beyond simply increasing shareholder wealth, and reflects employees’ motivation for engaging in the company’s work. Effective missions are inspiring by nature.
A mission statement is like an introductory paragraph that lets the reader know where the writer is going. Hence a mission statement must communicate the essence of an organization to the reader. An organization’s ability to articulate its mission indicates its focus and purposefulness. A mission statement typically describes an organization in terms of its:
i. Purpose:
Why the organization exists and what it seeks to accomplish/business-the main method or activity through which the organization tries to fulfill this purpose.
ii. Values:
The principles or beliefs that guide an organization’s members as they pursue the organization’s purpose. Mission and vision should not be confused as the mission statement summarizes the what, how, and why of an organization’s work, a vision statement presents and image of what success will look like.
Within mission and vision statements in hand an organization takes an important step towards creating a shared, coherent idea of what it is strategically planning for. Many people mistake vision statement for mission statement. Mission statement defines the purpose or broader goal for being in existence or in the business. It serves as a guide in time of uncertainty, vagueness. It is like guiding light.
It has no time frame. The mission can remain the same for decades if crafted correctly. While vision is more specific in terms of objective and time frame of its achievement. Vision is related to some form of achievement if successful.
3. Assessing the Situation/Analyzing Environment:
Once an organization has committed to why it exists and what it does, it must take a clear-eyed look at its current situation. Part of strategic planning, thinking and management is an awareness of resources and an eye to the future environment, so that an organization can successfully respond to changes in the environment.
Situation assessment, therefore, means obtaining current information about the organization’s strengths, weaknesses, and performance, information that will highlight the critical issues that the organization faces and that its strategic plan must address.
These could include a variety of primary concerns, such as:
i. Competition:
It is one of the most important issues to be taken up in the strategic planning process. It is based on calculating the value proposition that essentially calculates the ratio of what the customers get from the organization and how much it costs them.
ii. Economic conditions:
Some of the important economic conditions include the factors such as inflation, unemployment, interest rates, exchange rates, sources of funding, etc.
ii. Political conditions:
The political conditions that include the legal and regulatory frame work have a profound effect on the organization.
A part from these other Key issues may be new program opportunities, changing regulations or changing needs in the client population, internal consideration of the organization, technological factors, cultural factors etc.
4. Developing Strategies, Goals and Objectives/Strategy Formulation:
Once an organization’s mission has been affirmed and its critical issues identified, it is time to figure out what to do about them, the broad approaches to be taken (strategies), and the general and specific results to be sought (the goals and objective).
This can take considerable time and flexibility, discussions at this stage frequently will require additional information or a revaluation of conclusions reached during the situation assessment.
The strategies that need to be developed have to provide of the competitive advantages for the organization.
It may be defined as the ability of the firm to win over the long term in the competitive situation; competitive advantages provide the organizations with the comparative advantage (ability to do the things differently and better than others).
Some of the competitive advantage strategies may be:
1. Cost Leadership:
Competing by striving for the lowest cost producer of a product or a service.
2. Differentiation:
Making the product different from the competitors on the dimensions that are widely accepted by the customers.
3. Niche Strategy:
A strategy focused on the small segment of the market that was previously ignored by other players.
5. Implement Plans/Strategy Implementation:
Once the strategies have been formulated the next step would be to implement these strategies in order to find out the desired outcome of these strategies. The best method to study the implementation is to critically analyze the Mckinsey’s 7S Approach, developed by Mckinsey about 20 years ago this approach can be summarized as below:

The 3ss across the top of the model are described as ‘Hard ss’:
i. Strategy:
The direction and scope of the company over the long term.
ii. Structure:
The basic organization of the company, its departments, reporting lines, areas of expertise, and responsibility (and how they inter-relate).
iii. Systems:
Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (retail systems, call center systems, online systems, etc.)
The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed ‘Soft Ss’ by McKinsey:
iv. Skills:
The capabilities and competencies that exist within the company. What it does best.
v. Shared Values:
The values and beliefs of the company. Ultimately they guide employees towards ‘valued’ behaviour.
vi. Staff:
The company’s people resources and how they are developed, trained, and motivated.
v. Style:
The leadership approach of top management and the company’s overall operating approach.
In combination they provide another effective framework for analysing the organization and its activities. In a marketing-led company they can be used to explore the extent to which the company is working coherently towards a distinctive and motivating place in the mind of consumer.
6. Strategy Evaluation/Monitoring Outcomes:
This is the final step in the strategic planning process that generates the required feedback about the outcomes of the strategy that was implemented. If the required end results are not obtained then this step suggests the alternative strategy to meet the end results.


Thursday 20 July 2017

Computer and its applications

1.                        Business
A computer has high speed of calculation, diligence, accuracy, reliability, or versatility which has made it an integrated part in all business organizations.
Computer is used in business organizations for −

  • Payroll calculations
  • Budgeting
  • Sales analysis
  • Financial forecasting
  • Managing employee database
  • Maintenance of stocks, etc.

2.                        Banking
Today, banking is almost totally dependent on computers.
Banks provide the following facilities −

·        Online accounting facility, which includes checking current balance, making deposits and overdrafts, checking interest charges, shares, and trustee records.
·        ATM machines which are completely automated are making it even easier for customers to deal with banks.
3.                        Insurance
Insurance companies are keeping all records up-to-date with the help of computers. Insurance companies, finance houses, and stock broking firms are widely using computers for their concerns.
Insurance companies are maintaining a database of all clients with information showing −
  • Procedure to continue with policies
  • Starting date of the policies
  • Next due installment of a policy
  • Maturity date
  • Interests due
  • Survival benefits
  • Bonus
4.                        Education
The computer helps in providing a lot of facilities in the education system.
·        The computer provides a tool in the education system known as CBE (Computer Based Education).
·        CBE involves control, delivery, and evaluation of learning.
·        Computer education is rapidly increasing the graph of number of computer students.
·        There are a number of methods in which educational institutions can use a computer to educate the students.
·        It is used to prepare a database about performance of a student and analysis is carried out on this basis.
5.                        Healthcare
Computers have become an important part in hospitals, labs, and dispensaries. They are being used in hospitals to keep the record of patients and medicines. It is also used in scanning and diagnosing different diseases. ECG, EEG, ultrasounds and CT scans, etc. are also done by computerized machines.


Following are some major fields of health care in which computers are used.
·        Diagnostic System − Computers are used to collect data and identify the cause of illness.
·        Lab-diagnostic System − All tests can be done and the reports are prepared by computer.
·        Patient Monitoring System − These are used to check the patient's signs for abnormality such as in Cardiac Arrest, ECG, etc.
·        Pharma Information System − Computer is used to check drug labels, expiry dates, harmful side effects, etc.
·        Surgery − Nowadays, computers are also used in performing surgery.
6.                        Engineering Design
Computers are widely used for Engineering purpose.
One of the major areas is CAD (Computer Aided Design) that provides creation and modification of images. Some of the fields are −

·        Structural Engineering − Requires stress and strain analysis for design of ships, buildings, budgets, airplanes, etc.
·        Industrial Engineering − Computers deal with design, implementation, and improvement of integrated systems of people, materials, and equipment.
·        Architectural Engineering − Computers help in planning towns, designing buildings, determining a range of buildings on a site using both 2D and 3D drawings.
7.                        Military
Computers are largely used in defence. Modern tanks, missiles, weapons, etc. Military also employs computerized control systems. Some military areas where a computer has been used are −
  • Missile Control
  • Military Communication
  • Military Operation and Planning
  • Smart Weapons
8.                        Communication
Communication is a way to convey a message, an idea, a picture, or speech that is received and understood clearly and correctly by the person for whom it is meant. Some main areas in this category are −

  • E-mail
  • Chatting
  • Usenet
  • FTP
  • Telnet
  • Video-conferencing

9.                        Government
Computers play an important role in government services. Some major fields in this category are −

  • Budgets
  • Sales tax department
  • Income tax department
  • Computation of male/female ratio
  • Computerization of voters lists
  • Computerization of PAN card
  • Weather forecasting

10.                Marketing
In marketing, uses of the computer are following −
·        Advertising − With computers, advertising professionals create art and graphics, write and revise copy, and print and disseminate ads with the goal of selling more products.


·        Home Shopping − Home shopping has been made possible through the use of computerized catalogues that provide access to product information and permit direct entry of orders to be filled by the customers.

Wednesday 19 July 2017

How to build a team


1.   Select patiently.
A thorough selection process for picking your team members has greater long-term benefits, even if this means you spend more time recruiting than you’d like to. Hiring someone just to have bodies in the room can harm your team. Companies that do this wind up becoming a revolving door, whether it’s because prospective employees see the role as a temporary landing pad and are less interested in learning, or because you decide later on that they aren’t the right fit. This wind’s up costing you more money in the long run. Investing your time and money in people who truly specialize in the role your company needs will have immense payoffs later.
2.   Understand the strengths of each individual
It’s likely that your new employees will have come from a variety of backgrounds. They'll have different personalities and therefore different ideas about how to do their jobs. If you’re a manager, it’s important to recognize this because having a deep understanding of people is worth its weight in gold. If you can enable each employee to channel their strengths and shine in a way that benefits your business, then you’re on the right track.
Here are some tips on turning a group of individuals into a cohesive successful team that will help your business reach its full potential.
3.   Explain your business vision
Start by setting the scene for your employees. Let them know what they're aiming for and help them to understand the goals of your company.
  • Talk about the culture you want to build
    Plant the seeds of your business culture in your workers' minds so it grows and flourishes. Get them excited about being part of the team and the environment.
  • Describe your future plans
    Create a vision of where your team should be, six months, a year and two years from now. Use your accounting software to draw up realistic financial forecasts and share these with your employees.
  • Explain the environment of customers, prospects and partners
    Use diagrams if necessary to show the interaction between all the people around your company.
  • Use 'we' instead of 'I' when talking about your business
It's a common startup mistake to associate yourself with your business, but if you want your employees to feel part of a team then you'll need to include them too.
These will help your employees feel settled and give them a feeling for the situation in which they're working. Once that's done, you can start to bring out the best in them.
4.   Get your employees involved
It's important to quickly get your employees involved in the day-to-day running of your business. Keep them active and use their strengths to help them integrate and develop.
  • Give them tasks right away: On the first day, your new employees should already be doing useful work. Get them engaged right from the start.
  • Challenge them: Help your employees to push themselves. Use time lines or specific goals (with their input) for them to strive for.
  • Acknowledge their successes: Use the carrot, not just the stick. Always reward success with praise.
  • Mentor your new hires: Partner your new employees with someone senior on the team. The more mentoring you do, the faster your team will take shape.
Explain to your employees that the more effort they put in, the quicker the company will grow and the better their rewards will be. This could be in terms of promotion, salary and benefits.
5.   Let your team know that you value them
This is important and quite straightforward. You simply have to take an interest in your staff.
  • Show them you care: Learn about things like their family, personal life or hobbies.
  • Focus on personal growth: Think about enhancing your employees' skill-sets and management skills. Know their career goals and help them get there.
  • Invest in your employees: Give them the support and tools they need to be successful. This could include things like a healthy working environment, a supportive team or the right software or technical equipment.
  • Celebrate the little victories!: Reward every success, no matter how small it might seem. The goodwill generated will pay you back many times over.
  • Be positive and stay positive: Don't lose your cool or lose control, as that will set a bad impression and affect morale.
6.   Identify problems early
You may have people who are having (or causing) problems in your organization. The reasons for this might include issues with their home life, financial problems, or other personal hardships.
In this situation you must tread carefully and follow all local laws, especially those relating to privacy and employment rights. Seek professional advice if necessary.
Sometimes people just won't fit into your culture, which is again why making the right employee choice is so important. Firing people should be a last resort if you've tried every other option including third-party mediation services and verbal and written warnings. Be sure to follow local legislation if you're forced to take this option.

7.   Celebrate successes and failures.

Celebrating your successes and milestones also brings your team together and allows everyone to see that when they work together, great things can happen. If someone does a great job at something, give them a shout out in front of the rest of the team so that every effort is seen and appreciated. This also helps each person to feel visible and that what they’re doing has an impact.

In contrast, if your team fails at something, come together to redirect your efforts or turn it into something positive. Don’t throw anyone under the bus or turn a damage-control discussion into a blame game. This never helps anybody. Instead, give your team equal responsibility to put your heads together and figure out the next steps or pivots.

8.   Use your people skills to build your team
For your team to thrive you must be approachable, friendly, authoritative and responsible.
You may need training to help you become a better manager and there's no shame in that. Running a business is a learning process – and just like your employees, you can learn and improve.
After all, the better you are at managing people, the better your team will perform and the faster your business will grow.

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