Notes Learning 
Beaver Model: William H. Beaver proposed this model (Beaver Model) in 1966. Beaver demonstrated that financial ratios can be useful in the prediction of an individual firm failure, financial distress and bankruptcy prediction models. Bankruptcies, bond defaults, overdrawn bank accounts, and firms that omitted payment of preferred stock dividend are failed firms. Failure is the … Read more
INTRODUCTION L.C. Gupta Model is another model of understanding Financial Distress. This model made an attempt to examine survival strength of the company derived from the concept of marginal firms. This study is based in Indian data, attempting to distinguish sick and non-sick companies on the basis of financial ratios. The sample taken was of … Read more
Introduction Financial distress is a condition in which a company or individual cannot generate revenue or income because it is unable to meet or cannot pay its financial obligations. This is generally due to high fixed costs, less-liquid assets, or revenues sensitive to economic downturns. Looking at a company’s financial statement can help investors and … Read more
Introduction Prospect theory assumes that losses and gains are valued differently, therefore individuals make decisions based on the perceived gains instead of perceived losses. Prospect theory is also known as ‘loss-aversion theory.’ The basic concept of this theory is that if two choices are provided to an individual, both equal, with one presented in terms … Read more
IDFC First Bank : Introduction The IDFC Bank ( Infrastructure Development and Finance Company Bank) is an Indian Bank with the majority of the stake with IDFC Limited which is an Integrated Infrastructure Finance Company. The IDFC crisis provides good learning opportunities to the concerned parties. IDFC Bank started its operation in October 2015 after … Read more
YES BANK: INTRODUCTION YES BANK is one of the leading private sector lenders in the Indian banking and financial system. It was incorporated in November 2003 and started its operation from August 2004 with the mission; to establish a high-quality, customer-centric, service-driven, private Indian Bank catering to the ‘Future Businesses of India’. YES BANK is … Read more
What is money? Describe different forms of money with examples. Why is paper money advantageous? Money is an economic unit which is recognized as a medium of exchange for transactional purposes in an economy. It is widely accepted as a means of payment. Money serves three basic functions: A medium of exchange The exchange of … Read more
AMARTYA SEN Amartya Kumar Sen is an Indian Economist born on 3rd November 1933 in Santiniketan, India. Mr. Sen studied at Presidency College and Calcutta and then completed his higher degree from Trinity College in Cambridge. Mr. Sen has made contributions to welfare economics, social choice economics, economic theories of famines, decision theory, development economics … Read more
CAMEL Analysis: Introduction The CAMEL analysis framework was made as part of the “Uniform Financial Institutions Rating System” and it is developed by three federal banking supervisors of the U.S. in the 1970s. The Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the currency developed the CAMEL system to provide … Read more
Introduction Professor Douglas McGregor first explained the “Theory X and Theory Y” in his book ,”The Human Side of Entreprise” in 1960. Theory X and Theory Y presents the contrasting model of human behaviours and workforce motivation. This rise to two management style: Both management styles reflect different human behaviours and approaches to motivation. Theory … Read more