December 30, 2007

Reliance Vs Vendors

The advent of the much awaited Reliance fresh is posing a serious threat to the survival of vegetable vendors.Thousands of people earn their livelihood by selling vegetables.Reliance outlets were vandalised by political activists in Madhya pradesh,Utta pradesh,Delhi,Kerala,West Bengal,Orissa and Jharkhand to protect the interests of the small traders.In August 2007, Uttar Pradesh Chief Minister Mayawati ordered to close 10 new stores keeping view of Law & order situation.Reliance purchases vegetables from farmers at a price higher than the prevailing price in different areas.It didn't matter to the agitators that the farmers and consumers were both beneficiaries of this retail outlet.

December 26, 2007

Best Internet service providers in India

I personally feel Airtel and Bsnl are the best ISP providers in India. Both provide unmatched service quality with their wide connectivity and best download speeds. Airtel was one of the first ISP's to introduce 256kbps Unlimited package in India after which it gained a lot commercial success, and for quite a while was called the 'Best ISP in India.Airtel is also the first ISP to provide broadband speeds of 8Mbps .The BSNL DataOne Broadband provides unlimited usage hours between 2 a.m and 8 a.m.The customer care in bsnl is not very prompt and is in a deplorable state.It needs a lot of improvement.I don’t know when they will realize the importance of customers. In contrast,Airtel provides excellent customer care support and there are hardly any downtimes. So if you prefer good customer service and support you can go for an Airtel connection without a second thought.

December 22, 2007

Extraordinary Gifts

Mukesh Ambani(left) gifted his wife Neeta a $60 million(Rs 240 crore) Airbus 319 on her 44th birthday. This corporate jet features a bar, spacious bedroom, showers, an entertainment cabin packed with games, music and movies and a cabin for business with wireless and satellite systems. It also has all the luxuries of a home in it, namely a master bedroom, a master lavatory with a range of showers, galleys and a sky bar in the forward lounge complete with mood lighting.Sharukh khan gifted friend Farah Khan a Merc for Om Shanti Om.The director of Ekalavya,Chopra presented Amitabh a Rolls Royce worth Rs 3.5 crore.Who said that Indian economy is not booming?

December 21, 2007

Amazing facts

  • The Guinness Book of world records holds the record for being the book most often stolen from public libraries.
  • In Italy,A man can be arrested if he wears a skirt in public
  • There are 200 million privately owned guns in the US including 65 million handguns.
  • Skepticism is the longest word that one can make using alternate hands while typing.
  • The machine that takes a Space shuttle to the launching pad is called a crawler.It moves at 3Kmph.

December 18, 2007

Business Quiz 3 Answers

The answers to the Business Quiz 3 are as follows


2. America Online

3. Satyam infoway

4. British Airways and Air France

5. Carrier

6. Bajaj

7. Microsoft

8. Manchester United

9. Kwality Wall’s

10. Quality, Service and cleanliness

December 15, 2007

Business Quiz 3

1.Which tour operator was the first in India to introduce packaged tours for NRIs?

2.'2Market' is the name of the online shopping service run by which internet company?

3.In India who has launched cyber cafes under the name 'i way'?

4.Which are the only two airlines to have used the Concorde supersonic airliner on regular scheduled services?

5.Which company's showrooms are called 'Comfort Shops'?

6.Which Indian company launched the motorbike,Pulsar?

7.Which company provided the operating system for the IBM PC in 1980-81?

8.Red Cafe is the official video restaurant of which club?

9.Which Hindustan Lever brand has the 'Heart' logo?

10.What does the McDonalds motto of 'QSC' stand for?

The answers will be published in the next edition of business quiz...Send in your responses to

December 8, 2007

Gre practice tests

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December 4, 2007

Financial risk

In business mangers—both financial and non-financial professionals make decisions everyday that involve financial risks. Managing financial risks help you to make sound decisions and protect the financial health of your organization. Managing financial risks also encourages investors to have confidence in your organization.


There are four common types of investment risks including default, inflation, maturity and inflation risks.

Idle money or money that is not invested tends to lose value because of inflation (the overall general upward price movement of goods and services in an economy).To avoid this loss of value, individuals and organizations generally invest cash that they do not immediately need. In doing so, they hope to recover both the initial investment and a fair return. But investments are generally associated with some level of risk and examples are listed below.

  • General economic conditions such as recessions and depressions
  • National and international political events, such as elections, political revolutions and terrorism
  • Industry trends such as growth of computer use
  • Organizational characteristics such as weak third quarter performance

Default risk: Investments made in startup companies typically represent a default risk (if the start-up defaults, the investor can lose the entire investment).In contrast investments made in stable established organizations, such as the U.S government, represent little risk of default.

Default risk assesses the likelihood that the organization in which you have invested will fail to pay interest or principal promptly when it is due. In memorable terms, default risk alerts you to the profitability that the company in which you have invested is likely to default on its obligations. While most investments are subject to some default risk, the level of default risk varies.

Inflation risk: Investing in shorter term investments can minimize inflation risk. The shorter term investments stand a better chance of retaining their value in comparison to longer term investments where yearly inflation rates take their toll in devaluing the initial investment. It reduces the buying power.

Inflation risk addresses the likelihood that the predictable overall economic rise in prices for goods and services will cause the investment to lose some of its buying power. By devaluing the initial investment, over time, inflation results in the investor losing an increasing number of cents on every dollar. Inflation affects the entire economy, and inflation risk applies equally to all investments. The significance of inflation risk, however, is a threshold that all organizations must determine for themselves—there is no predefined range.

Maturity risk: Maturity risk can be represented as an investor presented with a more profitable investment opportunity, however the investors cash is tied up in their current investment (as the investor waits for the investment to mature).

Maturity risk addresses the gamble taken when investors tie up their cash in investments that require an investment period. Similar to inflation risk, maturity risk is dependent on time. When money is tied up in long term investments, it cannot be used for other perhaps more profitable, purposes. Similar to inflation risk, maturity risk increase in direct proportion to the length of the investment period.

Liquidity risk: Liquidity risk can be represented as an investor who is in urgent need of some cash back from their investment before it matures. The degree of liquidity risk can be assessed by how readily the investment can be converted back into cash. The easier it is, the lower the liquidity risk.

Liquidity is the degree to which an investment can be bought or sold on the market. Liquidity risk is an indication that an investment cannot be bought or sold readily.

Investments made in startup companies typically represent a default risk, while the 1% initial investment value loss ,over time is representative of an inflation risk.Likewise,the inability to readily convert the investment back into cash before it matures ,to replace the broken machinery, represents the liquidity risk. And finally the investor unable to free his or her funds from their current investment,(to invest in the better, more profitable investment opportunity) is representative of a maturity risk.

The types of risk are not the only factors that financial managers must consider when they review investment alternatives. They must also take into account general economic conditions, other opportunities, management philosophy, and the levels of risk. However, analyzing potential business investments to determine which types of financial risk they represent is an important part of financial decision making.

December 1, 2007

Business Quiz 2 Answers

The answers for the business quiz 2 are as follows

1. Daimler-Benz

2. Adam Gilchrist

3. Pizza Hut

4. Education of young people

5. Airbus A300

6. Castrol

7. IBM

8. HDFC.It was incorporated in 1977

9. Sharp corporation