Village Economy

Village Economy

In this, those areas are come related to agricultural areas. These things are professionals in today. For getting the success in these field persons get patient.

These opportunities are:-

1.    Rural Management: - For the rural management the rural profession is required for advice, trained & development for crop production, crop management, water harvesting, and soil development
2.     Micro-Finance: - Micro finance is related to small loans, used for the small shopkeeper, hawkers, poultry farms, dairy, fisheries, bee keeping, horticulture, mushroom farming and small business financing requirement.   
3.  Rural Market: - Rural market is top growing sector in today scenario. The migration of the people from village to city is become less and they are earned income from their local market & live with their families. 
4.    Handicraft & handlooms: -In our country India, in village sector there are different types of produced are made by hands women for their uses. If we promote or develop this area there are opportunities of success of handicraft business.   
5.  Organic Farming: - organic farming is related to produce fruits & vegetable without using chemicals or pesticides. People prefer that products for using that have less chemicals or total organic products.

Real Income & Per capital income

Real Income: - It refers to national income of a country, is expressed in money terms. But the value of money undergoes to changes “not money value, but real value”.to know the real value, money value will have to corrected through the deflation.

Real Income = National income in current money / Price of index for current period

Per capital income = Real Income / Size of population

Capital Structure

Capital Structure

“The composition or make-up of long term sources of fund such as equity, preference share, debentures and long term loans”. All these types of finance have to be in right proportion in order to ensure an optimum capital structure.

Essential features:- 
Profitability: - It should results maximum profit top the company, for achieve this objective a proper policies of trading on equity should be followed.
Solvency: - it should be given on the basis of solvency of the company. 
Flexibility: - Flexible enough to suit the changed conditio 
Conservation: - Conservative in sense of that the debt capacity of the company should not be disturbed.
Control: - Sound capital structure should provide maximum control on equity share holders on company affairs.

Circular Flow of Income and Expenditure

Circular Flow of Income and Expenditure:-

It refers to the process where by the National income and expenditure of an economy flow in acircular manner continuously through time the various components of national income and expenditure such as Savings, investment , taxation, government expenditure etc,are shown on diagrams in the form of current and cross current in such a manner that national income equals national expenditure.

                                 In as simple hypothetical economy where there are only two sector, household and business. The household sector owns the factor of productions (land labor and capital) , receives income by selling services to the business sector. The business sector consists or consumers and household sector buys the output of products of business sector.

Circular Flow of Income and Expenditure

Value of Money

Value of Money :

 Money itself may be quite valueless. It can be explain with an example: the intrinsic value of a rest. 100/- note may be zero. After all, it is only a piece of paper But its value arises from the fact that it is capable of purchasing. The value of money, thus lies n its buying capacity. The grater is its buying capacity the higher shall its value.