Prices Decline During Recession?

When there is an economic expansion, demand seems to outpace supply, particularly for goods and services that take time and major capital to increase supply. As a result, prices generally rise (or there is at least price pressure) and particularly for goods and services that cannot rapidly meet the increased demand such as housing in urban centers (relatively fixed supply), advanced education (takes time to expand/build new schools), but not cars because automotive plants can gear up pretty quickly.
In a boom, we would expect that the demand for goods to rise faster than the supply. All else being equal, we would expect factor 4 to outweigh factor 2 and the level of prices to rise. Since deflation is the opposite of inflation, deflation is due to a combination of the following four factors:

1. The supply of money goes down.
2. The supply of goods goes up.
3. Demand for money goes up.
4. Demand for goods goes down.

We would expect the demand for goods to decline faster than the supply, so factor 4 should outweigh factor 2, so all else being equal we should expect the level of prices to fall.

Seven Stages Of New Product Development To Enter In To The Market

The Seven Stages of New Product Develpoment:
1.Idea Generation
2.Idea Screening
3.Concept Development
4.Business Analysis
5.Product Testing
6.Technical Implementation
7.Commercialization

Types of Financial Innovations

Financial innovation enhances sustainability of institutions and their outreach to the poor.The following are types of financial innovatios
1. Financial system/institutional innovations
Such innovations can effect the financial sector as a whole, relate to changes in business structures, to the establishment of new types of financial intermediaries, or to changes in the legal and supervisory framework. Important examples include the use of the group mechanism to retail financial services, formalizing informal finance sysems, reducing the access barriers for women, or setting up a completely new service structure.
2. Process innovations
Such innovations cover the introduction of new business processes leading to increased efficiency, market expansion, etc. Examples include office automation and use of computers with accounting and client data management software.
3. Product innovations
Such innovations include the introduction of new credit, deposit, insurance, leasing, hire purchase, and other financial products. Product innovations are introduced to respond better to changes in market demand .

INCOME STATEMENT IS IMPORTANT FOR ANY COMPANY

One of the most common and important documents will be your income statement. Also called a profit and loss statement, this document provides you with a periodic summation of the profits and losses of the business during a specific time period, which may be one month, three months, six months or a year. The income statement, appropriately named, will provide you with an overall statement of your net income during the selected time period. It will prove advantageous for:
1 Paying taxes
2 Evaluating your current financial position
3 Making financial projections
4 Attracting potential investors
The manner in which an income statement works is relatively simple. By listing both revenues and expenses, you can determine how much money you have earned. It is a simple formula in which you add up your revenues, add up your expenses and subtract the expenses from the revenues. (Revenues - Expenses = Net Income)
The Income Statement answers the question; "How is the business doing?" during a given time period. It allows you to see if you are spending too much money and if so, in which areas you could cut back. It also allows you to compare time frames such as the first quarter of 2008versus the first quarter of 2007. This way you can compare your profits or losses and determine where you need to make adjustments. Your Income Statement should also help you determine your tax liability.

Typically, an Income Statement lists all revenue and expenses. The degree to which you breakdown each expense category will depend on the size and nature of the business along with the types of categories with which your business in most closely involved

How to Determine the Value of Cash -- Today and Tomorrow

Present value analysis is a method of calculating the value (in today's dollars) of money paid out or received in the future. This method is a tool that can be used by the buyer or seller of a business to determine if full value has been given or received. The value analysis approach involves 3 key questions:

1. How much are the dollars that flow in over a given time period worth today?

2. What risks are faced in waiting for the money?

3. How much will inflation erode the value of future payments?

For the seller, in all transactions involving payments into the future, the time value of money and the risks or uncertainty of receiving that money must be considered. When risks are greater, higher present value should be used.

Do u know what is the role of finance manager?

Role of the Financial Manager Comparing and contrasting the role of an accountant with the role of a financial manager is simple. A financial manager directs the actions and decisions of accountants. A financial manager is a vital part of a company team that works closely with the directors of such company. The financial manager also works with the latest hardware and software and is responsible for making very important decisions related and regulated by the state and federal governments and sanctions designed for effective and accurate financial reporting. Decision making responsibilities of a financial manager are performed in many roles.

Job Description

The Finance Manager, reporting to the Managing Director, is on the management team and is the line manager for the Finance Administrator. The Finance Manager will be responsible for:
the finance strategy of the company, which will be dependent upon the overall company strategy as agreed with the Managing Director;
providing clear Finance direction to the Managing Director and the management team based on the performance of the company, legal requirements and making recommendations where appropriate;
completion of any special project requirements.
Finance management
The Finance Manager is accountable for ensuring all aspects of Finance management are completed in an auditable fashion.
The Finance Manager will be accountable and responible for:
Writing and leading the consultation on the annual budget and delivering it on time.
Yearly forecasts being produced and management review of the forecasts on a quarterly basis. Producing cashflow forecasts and recommendations to assist in defining the forward strategy of the company.
Production of yearly annual accounts and any dealings with the auditors.
Producing timely and accurate monthly finance reports including a full review of the monthly performance prior to the management meeting. This includes production of the monthly finance, key performance indicators and management reports.
Cashflow management and establishing a relationship with the business bank manager regarding any funding requirements the company may have.
Review of commercial terms and confidentiality agreements for projects.
Ensuring Finance controls are in place throughout the organisation.
Developing Management Information Systems and Key Performance Indicators in line with the needs of the company.
Development of the project accounting of the company and ensuring all sales and costings are allocated to the relevant projects.
Providing Finance training to staff where appropriate.
The annual audit process and dealings with the external auditors.
Managing the Credit Control process to ensure debtor days are kept to a minimum.
Managing the sales ledger and to ensure that all relevant costs are invoiced to the customers .
Managing the payroll on a monthly basis.
Managing the preparation of monthly Balance Sheet reconciliations.
Supervising the purchase ledger and all duties applicable to the Finance administrator.
Ad hoc exercises as and when required.
The Finance Manager will oversee the profit recognition of the company, reporting controls of project costs and overhead expenditure.
meeting and repotrsFinance Manager will:
be accountable for delivering regular finance and office related status reports;
be accountable for delivering the budget and strategic plan in agreed timescales;
be accountable for delivering the year end accounts in an agreed timescale;
attend monthly management meeting;
liaise with Engineering Manager, Sales Manager and Marketing Manager.

I wrote and collected all the information regarding the role of finance manager in the company where the students will be well prepared ,as they will be stepping towards the company............so i think it vil be useful......................

The 25 best mutual funds

The best stock and bond funds to help you meet your wealth-building goals.

The 25 best mutual funds are:

1. Marsico 21st Century

2. T Rowe Price Growth Stock

3. Vanguard Primecap Core

4. Selected American Shares

5. Oakmark Select

6. T Rowe Price Equity Income

7. Excelsior Value & Restructuring

8. Baron Small Cap

9. Vanguard Selected Value

10. FBR Focus

11. Julius Baer International Equity II

12. Oakmark International

13. Dodge & Cox International Stock

14. T Rowe Price Emerging Markets Stock

15. Fairholme

16. Legg Mason Opportunity Trust

17. Bridgeway Aggressive Investors 2

18. CGM Focus

19. Muhlenkamp fund

20. Merger fund

21. Loomis Sayles Bond funds

22. Harbor Bond

23. Dodge & Cox Income

24. Fidelity Floating Rate High Income

25. Fidelity Intermediate Muni Income