Mental Accounting [PPT]

BEHAVIOURAL FINANCE Mental Accounting is the set of cognitive operations used by individuals and households to organize, evaluate, and keep track of financial activities. It is one of the Heuristics i.e. mental shortcuts to make a judgment. Mental Accounting was proposed by Richard Thaler. He has Nobel Prize for his contribution to Economic Sciences.

The BCG Matrix

The BCG Matrix

Introduction BCG Matrix is a four celled matrix ( 2*2 matrix) developed by Boston Consulting Group, USA. It is a widely used corporate portfolio analysis tool. BCG matrix provides a graphical representation for an organization to examine different businesses in its portfolio on the basis of their related market share and industry growth rates. It … Read more

Personal Finance

Personal Finance

Introduction Personal Finance is a modern concept of planning and managing personal or financial activities. It generally covers concepts such as income and spendings, savings, investments, insurance, etc. from individuals’ perspective. It is an application of financial concepts in financial decisions at an individual level at different stages of life. Personal finance involves analyzing financing … Read more

Theories of Capital Structure

THEORIES OF CAPITAL STRUCTURE

INTRODUCTION Capital structure refers to the combination of debt and equity sources of financing in the business. Capital structure is the mix of the long-term sources of funds used by a firm. It is made up of debt and equity securities and refers to permanent financing of a firm. Debt and Equity are used in … Read more

LIMITATIONS OF BCG MATRIX

Limitations of BCG Matrix

BCG Matrix is a four celled matrix ( 2*2 matrix) developed by Boston Consulting Group, USA. The BCG Matrix produces a framework for allocating resources among different business units and makes it possible to compare many business units at a glance. But BCG Matrix is not free from limitations, the major limitations of BCG Matrix … Read more

Method of Economics Analysis

Deductive method of Economic Analysis Introduction The deductive method is also known as the analytical, abstract, or prior method. Deductive method consists in deriving conclusions from general truths, takes a few general principles and applies them to draw conclusions. The deductive method derives new conclusions from fundamental assumptions or from truth established by other methods. … Read more