Many MBA programs offer an education in general management along with a more specialized curriculum. Because this type of education is relevant to all industries and sectors, it will be valuable regardless of the career that is chosen after graduation. When it comes to the MBA degree, there are many different disciplines that can be […]
The unprecedented growth of the retail industry has had wide spread effects on the education segment and that too in more ways than one. It had its share of disappointments when the global economic downturn was in full force, but with economies from all across the globe developing swiftly, it is high time you admit yourself into retail management courses, if you really want to ride these favorable waves of the market.
The jobs in Retail industry are burgeoning and this is the perfect time to pitch in. you can start by pursuing Retail management courses in some top notch educational establishment. Marketing courses and finance courses come under MBA and you have to choose an institution, which can fulfill your unique requirements.
Finance courses are crucial because economy plays an important role in most of the countries and society and it is infeasible to think of one without it. Finance courses will make certain that you innately comprehend the underling principles of the functionality of economies and not to mention finance careers are pretty lucrative and alluring. They can endow you with the perfect opportunity to show your expertise in this cut throat competitive market.
You hear about the merge between various top corporations and business expansion plans of some MNCs; these are done by professionals who have had sound finance education. To make certain you land a high paying job, you must make certain that you pursue Finance courses at some reputed MBA College and that it is accredited world wide. There are many MBA institutes, which proffer custom tailored courses which can either be full time, distance and part time.
We all reckon the significance of marketing in this business driven world where business and commercialism has taken over almost everything. Be it a start up business, a low or mid sized one or a large blue chip corporation, everyone needs some degree of marketing to boost their sales and escalate ROI (Return on Investment). Pursuing a Marketing course will lay the foundation to a lucrative career.
Some of the most sought after and renowned Finance courses are: – Accounting Technician Course (ATC), Advanced certification in Capital Market, Advanced Diploma in Banking, Finance and Insurance, Advanced Diploma in Financial Accounting & Taxation (ADFAT), Advanced Management Programme in Banking & Finance, Advanced Option Trader, Advanced Technical Analyst, B Com (Honours in Accounting and Finance), and a lot more.
On a similar note, if we discern some of the most esteemed and distinguished Marketing courses, we will stumble upon courses such as: – Doctor of Business Administration (DBA), Doctor of Philosophy (Ph.D.) in Management, Fellow Programme in Management (FPM), Ph.D ( Business Management), Management Development Programme, Postgraduate Diploma in Management E-Biz and a lot more. These courses can be pursued after you have completed your MBA degree. Now let us sneak a quick look through some imperative Retail Management courses: – Post Graduate Certificate in Management (Retail Management), Post-Graduate Diploma in Management (Retail Management), MBA (Retail Management), Post Graduate Program in Retail Management (PGPRM), etc.
So far, it’s been kind of entertaining, hasn’t it? This whole ‘franchise education’ process? You’ve told your friends that you’re thinking of being your own boss, you’ve found a franchise that seems to fit your goals and desires, you’ve talked to existing franchisees and now it’s time to read the Franchise Disclosure Document (FDD) and Franchise Agreement.
Ugh. It appears and looks heavy and legal. No fun. Scary even. Rest assured that fear at this point is normal and healthy. What you don’t know is that the franchise disclosure document you hold in your hands is a lot friendlier than it looks. It is a standardized document, brimming with franchise information. You’ve probably heard that it’s written to protect the franchisor; you should also know that it protects the franchisee by leveling the playing field. The franchisor is required to share franchise information in a clear, transparent fashion. In turn, all prospective franchisees clearly know their rights and will be expected to meet the same standards.
So put yourself in a positive state of mind and dive in. Dedicate your full attention now rather than making assumptions that may turn out to be erroneous. You don’t want to count on using equipment you already own, or adding your wife’s special carrot cake to the menu, only to find out that’s not part of the business model. Franchise systems work best when there are clear systems, standards and expectations. The value of your franchise is enhanced and the brand is strengthened when all franchisees offer consistently superior products and services.
The FDD covers every facet of the business, including: 1. What is covered in your franchise fee and initial investment 2. Physical property requirements, such as the location, building, equipment and supplies 3. A definition of the operating practices which protect the entire franchise system 4. Initial and on-going training and assistance provided by the franchisor 5. Whether advertising will be local or national and if the cost will be shared 6. How royalties are calculated and paid 7. Bookkeeping, accounting and reporting requirements 8. The parameters of your protected territory 9. More, much more
Pay special attention to the territory. This is one area of the Franchise Agreement that may be negotiable. For more information on all the sections in the FDD and what to look for in each section, read Chapter 7 of The Educated Franchisee.
Studying the FDD and the Franchise Agreement is a critical part of your franchise education! Go over each section carefully and be sure you understand how each item will affect you. A good franchisor will spend whatever time required to assist you become at ease with these documents. Ultimately, you might determine you can’t accept the terms. Best to learn that now! And remember – at this stage of the franchise investigation fear is normal. Let it push you to seek the information you need to make the right decision for you.
Education never goes waste and we all know it. However, visiting a bookstore and buying books is something we cannot manage that often. And then we have the TV that keeps us occupied for a long time. Think of the next generation. They are already hooked on to so many other things like TV and games that reading books comes rather low on their priority list. So, is education not going to happen for us? It can happen and the Internet makes it possible to happen. There are some of these fantastic websites that educate you about anything and everything you want to know about. We are not talking about Wikipedia. We are talking about websites that give you information on topics in the form of online books and magazines. If you are looking for a science magazine or any other education magazine online then these are the websites to visit.
The way these websites work is very simple. You have the option of reading from these websites or writing for these websites. Once you become a member you can post your writing and have others read them. On the other hand, you can pick up any topic and read what other authors wrote about it. These websites cover every topic you can think of � topics for adults, topics for children, topics for men and topics for women and so on. You can access the best science magazine or any other education magazine online on these websites and enhance your knowledge.
Think of any topic that comes to your mind � astrology, business and finance, education and science, health, law, medicine, politics, wild animals etc. and you are sure going to find substantial items to read on these websites. The magic of these websites is that everything is arranged in a neat order. So, you have links to all the topics in one place and you just have to click the link to see the articles and writings on these topics. If you are interested in science and education then you need to click the appropriate link and you will get to see science magazine and education magazine online covering varied topics. The most popular magazines will be listed on the main page. If you cannot find what you are looking for then you can use the search option and access the topic and the articles related to it.
Some people think that a science magazine or an education magazine online may not have the right credentials because there is probably no one to check them for veracity. However, when you read your stuff from authentic websites you don’t need to worry about this. An authentic website will always check the content before they upload any information. So, your job is to find one or more such websites and read all the content of your choice.
So, whenever you feel the need for some knowledge go ahead and gorge on all the info that is available online. A proper science magazine or an education magazine online will help you immensely.
The specialised study of finance becomes imperative when you have to manage the multifarious activities and are responsible for smooth functioning of the organisation as a whole, for now and in future as well. Out of the five key functional areas of any organisation- production, marketing, finance, human resource development and information technology, it is the finance function which is of leading importance since all other functions can come to naught in the absence of finance.
It is for this reason that finance professionals coming from reputed institutes and having done professional courses in finance are always the most sought after. In India, a number of post-graduate courses in finance are available. These are Masters in Finance Degree, Diploma in Finance and Certified Financial Analysts (CFA). You shall make a very clear choice of these finance courses.
CFA Vs CA : Before the CFA course became widely recognised as dealing in core finance in India, it were the chartered accountants (CAs) who have been handling matters of finance as well. But, the essential difference lies in the fact the CAs are expert in accounting and bookkeeping whereas the CFA professional deals in a range of financial management activities like equities, risk, portfolio, insurance, financial markets and many others. CAs have limited knowledge of finance whereas CFAs have specialised knowledge of the same. The CFA course is widely recognised world over by the financial institutions and provides equally good career prospects.
CFA VS Masters in Finance (MF): Though both these courses deal in finance, there is a difference between their levels of acceptance, course curriculum and certifications. Those who are looking for the �Degree’ in Finance from a university recognised by UGC, ideally opt for MF. If �degree’ does not matter and you are looking to private sector jobs, CFA is equally well accepted qualification there. The CFA is considered to be tougher in quality of education than the MF.
CFA Vs Diploma in Finance : Diplomas in Finance are offered by those educational institutes who are recognised by the AICTE. These are not the Degree courses offered by the University affiliated colleges. Financial courses are offered by top management institutes in the country.
What does the CFA equip you with? : After doing the CFA, you would be able to know how to manage wealth and investments. You will gain specialised knowledge of how to do equity valuation, how to manage risk and do insurance planning, how to create a profitable and optimal portfolio of investments and manage the same, learn about project and international finance, corporate restructuring involving mergers and acquisitions, tax and estate planning and much more. No doubt, it takes you to a much higher level of finance education and a far more rewarding international career.
Where all you can make a career? : CFAs are highly in demand in core finance sectors like mutual funds, stock markets, brokerage firms, portfolio management companies, equity planning, insurance sector, foreign exchange and risk management companies, commodities exchanges and in many other companies and institutions.
We haven’t seen a sector watch list as hot as cannabis since the technology industry took off. As fast moving as technology proved to be, it is projected to pale in comparison to the cannabis industry. While no one can predict the state-mandated legalization of medical and recreational cannabis use, one thing is for sure – mainstream Fortune 500 companies are in the game and that speaks volumes!
There are many marijuana stocks to keep an eye on, but the least risk will be felt with developed companies already in some type of parallel market. For those with a higher degree of risk acceptance, there are a few “new” companies focused only on the cannabis industry that have already shown impressive growth curves.
While B Green Consultants are not investment portfolio advisors and will bear no responsibility for future financial losses from anyone that acts based on this information, here are the top 3 cannabis stocks poised for growth, as we see it.
1 – The Scotts Miracle-Gro Company (NYSE: SMG)
Best known for the manufacturing, marketing and selling of a consumer line of lawn and garden products, Scott’s Miracle-Gro has thrown their proverbial hat into the ring. CEO Jim Hagedorn is betting on hydroponics. While ramping up ancillary products for the cannabis growth industry, in 2013 Hagedorn began the biggest acquisition in Miracle-Gro history since the 1990s. Scott’s Miracle-Gro paid Dutch grow lighting company Gavita $136 million, while it’s subsidiary, Hawthorne, just signed a deal to purchase Arizona-based Botanicare. General Hydroponics, also located in California, was purchased by Scott’s Miracle-Gro company for $130 million last year. Scott’s Miracle-Gro is a well established company who is believed to be setting themselves up for high volume hydroponic growth and product support.
2 – Toro Company (NYSE: TTC)
Another well established Fortune 500 company, Toro, is looking to market their line of residential and commercial landscaping products to the commercial growers market. It’s estimated that Toro could triple its share price if the legalization of marijuana was to pass on a large scale. Toro is, however, hedging their bets. Toro isn’t technically investing in new marijuana growth and harvesting equipment yet, such as is seen with Scotts. This makes Toro a safer bet.
3 – AbbVie Inc. (NYSE: ABBV)
AbbVie Inc., is best known for their Marinol drug – an FDA approved treatment for nausea in patients undergoing chemotherapy and being treated for loss of appetite while carrying an AIDS diagnosis. Marinol is a synthetic form of THC and is delivered by capsule. Although marijuana is considered a Schedule 1 drug by the DEA, Marinol is listed as a Schedule 3 drug. What this means is that the FDA believes the clinical benefits of Marinol outweigh the abuse potential. AbbVie Inc. also manufactures Humira, a biologics therapy used to treat autoimmune diseases such as rheumatoid arthritis and psoriasis. Though there are other pharmaceuticals in the AbbVie Inc. arsenal that include treatment for hormonal fluctuations, hypothyroidism, endometriosis, Parkinson’s disease, Parathyroidism and Cholesterol issues, The Street believes that the synthetic form of THC which they are currently producing as a Schedule 3 drug will receive the majority of their marketing dollars in the future. AbbVie Inc. is a riskier bet because the company is dependent not only on the continued legalization of marijuana, but it also risks the FDA coming in with drug schedule changes that would stop them from producing THC as a Schedule 3 drug. Bigger risk means potentially bigger rewards. Are you a cannabis entrepreneur who is looking to dig deep into the largest financial boom since Technology – and generate wealth in the process? Then register for your 7 day Free trial membership at B Green Consultants today!
National REIA’s mission is to develop, support and promote local real estate investor clubs while serving the interests of the real estate investment industry through networking, education, leadership on legislative issues, and promoting professionalism and standards of excellence in our industry.
A perfect example of the how the National REIA can play a role in protecting the industry’s interests was the monitoring and direct input their legislative delegation had this past summer in Washington, D.C. The National REIA delegation’s mission was to stop HR Bill 1728 (The Mortgage Reform and Anti-Predatory Lending Act).
The National REIA’s delegation met with congressional and senatorial members on key committees working on HR 1728, a bill with specific language in Section 101 (3)(e) that would devastate the real estate investing industry.
From the reports and feedback gained from those meeting, the National REIA took action to broadcast those reports in its Newsletter and website. The call to action in those reports gave members direction and a course of action which included contacts with their local congressmen and women.
April 21, 2010 Is The Third Annual National REIA Day On The Hill
Their work towards stopping HR 1728 continues into 2010. The National REIA will organize its third annual, two-day mass demonstration in Washington, D.C. on April 21 and 22.
NREIA’s AGENDA WHILE IN WASHINGTON D.C.:
�Meet face to face with representatives and to educate them on the importance of real estate investing to the nation’s economy.
�Hear first-hand updates from Washington insiders about the current state of politics and why it is imperative to be involved, NOW more than ever.
�Learn the key issues facing real estate investors and how to conduct effective meetings with your local, state, and national representatives.
�Explore legislative trends around the nation as you network with other real estate investors from all over the country.
Financing a car is a very important process and today with the availability of numerous car finance brokers it has become an easy option to get secure car loans. Today these car finance brokers are also playing a vital role in assisting car buyers. In fact, consulting and taking help of car broker can definitely be most appropriate option if you don’t have any clue about what to look at according to your budget. A finance broker is the most experienced personnel and clued-up on how to approach the financiers in a way that can persuade them to approve the loan. They usually have good relations and reputation with the lenders as being reliable, and so they know which lenders are likely to be open to a client.
In general, they act as the key source and offer services such as finding a used or brand new car model that the customer wants and within a budget range. At times, these car brokers even assist car buyers in negotiating with a used car seller. However, these days there are many car finance services and making a proper selection is turning out to be a very complicated process. You need to understand that not all car finance services are fair. Therefore, if you are looking to finance a car or choose a car financing service then here are a few important points that you should keep in mind while making a selection:
You must confirm whether your car finance consultant or broker is a member of FBAA or COSL or both of these industry associations. While Finance Brokers’ Association of Australia Ltd. (FBAA) is one of Australia’s leading membership bodies for finance broking professionals, the Credit Ombudsman Service Limited (COSL) is an independent organisation that is mainly indulged in handling complaints about finance brokers. You can easily confirm finance consultant’s membership by searching through their member list. Adding to this, WA Finance Broker License is yet another additional requirement for finance brokers serving in Western Australia. Nevertheless, if you are looking for finance broker and residing in the state of WA or other states of Australia, it is essential that the broker must hold a WA Finance Broker License. A broker holding WA Finance Broker License entails passing a comprehensive range of checks, educational requirements and operational requirements.
While selecting a car finance broker also ensure you know about their range of lender accreditations. The range of accreditations held by a broker governs the range of options they can offer. You must note that a broker’s accreditation can not just change the range of finance options available to you, but it may even affect the quality of those options.
You must choose car finance service that recruits and retains professional and knowledgeable staff. The broker must be an experienced professional who can demonstrate and explain about why a particular product is highly recommended or even suites your specific circumstance. If possible make sure you even ask for testimonials from previous clients that in turn may help you in the confirmation of their experience.
As mentioned earlier, today there are many finance services available in the market. Therefore, you must find out more about any extra service that a broker can provide. You should expect your finance consultant to supply detailed information about timeframes, and any fees or extra charges related with your finance. The key point is if a broker is being able to clarify the comparison rate of your recommended vehicle finance and the overall cost of your finance package then it is quality sign of a good finance broker.
These are some important points that can help you in choosing your car finance services easily. Today a lot of responsibility goes along with buying a car and taking financial help through car broker. Just taking care of few essential steps can help you select your car broker and further purchase a nice new or used car.
Fast car on open roads. It is a perfect picture for any car enthusiast. But you have to go to your work and also drop your kids to school. This is the real picture for most of us. We need to save time when we don’t have any. A typical individual has so many odd jobs to complete that a car can, without doubt, facilitate their accomplishment. Financing your car doesn’t fit your idea of the way of buying your car; then probably you are still stuck with traditional car buying methods. Shed your inhibitions with regard for car financing because it undoubtedly keeps in mind your financial caliber before furnishing you with a car finance loan.
Car financing has taken a new spin with regard to providing investment for buying a car. So, how do you finance a car? If this question leaves you baffled, then you have to go a long way in the process of buying a car. The term ‘financing’ in relation to buying a car connotes either rendering loan to buy the car or lease the car to you. You are probably concentrating on the former meaning. Many people are in favour of talking car finance from dealership for it seems like a convenient option. It seems easy; you select a car, fill out a credit application, and drive away with your car – all in a day’s work. Car finance through dealership will give you car finance on weekends and even at nights when other banks and credit unions are closed.
Seems convenient, isn’t it? But there is a catch. The dealer will be certainly charging you more for your car finance. Usually car buyers are overcharged by 3% on their car finance. A great number of complaints about car financing are related to dealers. 0% APR is not only attractive but lures the buyers to acquire up car finance not meditating if it is feasible for them. There are very few people who can actually get a 0% APR. Thus car finance deals usually fall midway thereby making car finance experience an extremely distressing one. You are buying a new car and probably for the first time, you certainly want it to compliment your enthusiasm. There are few elementary things that need to be kept in mind before taking that crucial primeval step in car buying.
First and foremost in car buying and financing is checking your credit score before you apply for a car loan. Many people are unaware of the fact that they even have a credit score. You can expediently check your credit score online. So, if you have bad credit history then probably you will be paying more interest rate for your car finance. If your credit score drops below 550, then probably apply for new car finance is not such a good idea. First repair you credit score. Repairing credit score requires little effort, helps you repay your debt and retain your credit report. Online car finance companies can get you car finance loan even if your credit score is lower than required. Your car finance loan can get approved in minutes. Online car finance companies have revolutionized car finance procedure. With lowest online car finance rates, no application fees, or down payments car finance companies provide a formidable competition to car dealers. Car finance companies have set a standard for providing car finance that is worth opting for.
70% of cars are obtained by some kind of financing. You can even finance a used car. The process is as effortless and undemanding as financing a new car. The essence to finding the right car finance is doing to research about your kind of car. Knowledge is power; you must be awake to this age old logic. When so much information frequently exists, then why not make use of it. Find out how much your car costs by comparing rates with local dealers. Very decisive, is cognizing how much, you can afford. Calculate, you monthly income and deduct your usual monthly expenditure to find out how much you can afford on a monthly basis. Compute carefully, otherwise you will find difficulty in repaying your car finance loan. And you definitely don’t want to fool around with your repayment plan because a lot is at stake. You can seek free advice for your own car finance online through credit unions and loan institutions.
You are a car enthusiast, a car consumer, a just a person who needs a car you ought to drive the best car. And why not drive the best car, when you have access to the best car finance plans. Car financing is a transparent route that leads you to become a car owner. Car finance loans are usually short term loans ranging from 36 to 72 months. Shorter loan term imply, lower interest rates and will prove to be cheaper. You have been working hard to select the car you want; there is a fairly good chance that you would not have to work so hard for car finance. So, sit back relax and enjoy the ride.
Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.
The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:
1) “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;
2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.
First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.
This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.
Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.
V. M. Rodionova has a different position about this subject: “real formation of the financial resources begins on the stage of distribution, when the value is realized and concrete economical forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Though both of them give quite substantiate discussion of finances, as a system of formation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.
In the manuals of the political economy we meet with the following definitions of finances:
“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural level of the people and for satisfying other general society requests”.
“The system of creation and usage of necessary funds of cash resources for guarantying socialistic widened further production represent exactly the finances of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, regions and separate citizen according to the movement of cash funds make financial relations”.
As we’ve seen, definitions of finances made by financiers and political economists do not differ greatly.
In every discussed position there are:
1) expression of essence and phenomenon in the definition of finances;
2) the definition of finances, as the system of the creation and usage of funds of cash sources on the level of phenomenon.
3) Distribution of finances as social product and the value of national income, definition of the distributions planned character, main goals of the economy and economical relations, for servicing of which it is used.
If refuse the preposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the modern economical literature. We may give such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”. in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the financial foundation. They concern “distribution and redistribution of the value of created economical product, also the partial distribution of the value of national wealth”. This latest is very actual, relatively to the process of privatization and the transition to privacy and is periodically used in practice in different countries, for example, Great Britain and France.
“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.
“Finances are the system of economical relations, which are connected with firm creation, distribution and usage of financial resources”.
We meet with absolutely innovational definitions of finances in Z. Body and R. Merton’s basis manuals. “Finance – it is the science about how the people lead spending `the deficit cash resources and incomes in the definite period of time. The financial decisions are characterized by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions nor any other person” . “Financial theory consists of numbers of the conceptions… which learns systematically the subjects of distribution of the cash resources relatively to the time factor; it also considers quantitative models, with the help of which the estimation, putting into practice and realization of the alternative variants of every financial decisions take place” .
These basic conceptions and quantitative models are used at every level of getting financial decisions, but in the latest definition of finances, we meet with the following doctrine of the financial foundation: main function of the finances is in the satisfaction of the people’s requests; the subjects of economical activities of any kind (firms, also state organs of every level) are directed towards fulfilling this basic function.
For the goals of our monograph, it is important to compare well-known definitions about finances, credit and investment, to decide how and how much it is possible to integrate the finances, investments and credit into the one total part.
Some researcher thing that credit is the consisting part of finances, if it is discussed from the position of essence and category. The other, more numerous group proves, that an economical category of credit exists parallel to the economical category of finances, by which it underlines impossibility of the credit’s existence in the consistence of finances.
N. K. Kuchukova underlined the independence of the category of credit and notes that it is only its “characteristic feature the turned movement of the value, which is not related with transmission of the loan opportunities together with the owners’ rights”.
N. D. Barkovski replies that functioning of money created an economical basis for apportioning finances and credit as an independent category and gave rise to the credit and financial relations. He noticed the Gnoseological roots of science in money and credit, as the science about finances has business with the research of such economical relations, which lean upon cash flow and credit.
Let’s discuss the most spread definitions of credit. in the modern publications credit appeared to be “luckier”, then finances. For example, we meet with the following definition of credit in the finance-economical dictionary: “credit is the loan in the form of cash and commodity with the conditions of returning, usually, by paying percent. Credit represents a form of movement of the loan capital and expresses economical relations between the creditor and borrower”.
This is the traditional definition of credit. In the earlier dictionary of the economy we read: “credit is the system of economical relations, which is formed while the transmission of cash and material means into the temporal usage, as a rule under the conditions of returning and paying percent”.
In the manual of the political economy published under reduction of V. A. Medvedev the following definition is given: “credit, as an economical category, expresses the created relations between the society, labour collective and workers during formation and usage of the loan funds, under the terms of paying present and returning, during transmission of sources for the temporal usage and accumulation”.
Credit is discussed in the following way in the earlier education-methodological manuals of political economy: “credit is the system of money relations, which is created in the process of using and mobilization of temporarily free cash means of the state budget, unions, manufactures, organizations and population. Credit has an objective character. It is used for providing widened further production of the state and other needs. Credit differs from finances by the returning character, while financing of manufactures and organizations by the state is fulfilled without this condition”.
We meet with the following definition if “the course of economy”: “credit is an economical category, which represents relations, while the separate industrial organizations or persons transmit money means to each-other for temporal usage under the conditions of returning. Creation of credit is conditioned by a historical process of fulfilling the economical and money relations, the form of which is the money relation”.
Following scientists give slightly different definitions of credit:
“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the percentage rate by the borrower”.
Credit is giving the temporally free money sources or commodity as a debt for the defined terms by the price of fixed percentage. Thus, a credit is the loan in the form of money or commodity. In the process of this loan’s movement, a definite relations are formed between a creditor (the loan is given by a juridical of physical person, who gives certain cash as a debt) and the debtor.
Combining every definition named above, we come to an idea, that credit is giving money capital of commodity as a debt, for certain terms and material provision under the price of firm percentage rate. It expresses definite economical relations between the participants of the process of capital formation. Necessity of the credit relations is conditioned, from one side, by gathering solid quantity of temporarily free money sources, and from the second side, existence of requests of them.
Though, at the same time we must distinguish two resembling concepts: loan and credit. Loan is characterized by:
o Here, the discussion may touch upon transmission of money and also things form one side (loaner) to another (borrower): a)under the owning of the borrower and, at the same time, b) under the conditions of returning same amount or same quantity and quality of the things;
o The loaning of money may bear no interest;
o Any person may take part in it.
With the difference with loan, credit, which is somehow a private occasion of the loan, represents:
o One side (loaner) gives to the second one (borrower) only money, and _ for temporal usage;
o It may not bear no interest (if the assignment doesn’t foresee something);
o In it creditor is not any person, but a credit organization (at the first place, banks).
So, a credit is the bank credit. To our mind, it is not correct to use “credit” and “loan” as the synonyms.
Banking crediting is the union of relations between bank (as a creditor) and its borrower. These relations touch upon:
a) Giving a certain amount of money to the borrower for definite purpose (though, we meet with the so-called free credits, aims and objects of crediting are not appointed in the assignment);
b) Its opportune returning;
c) Getting percentage rate from the borrower for using the sources under his/her disposal.
The essential foundation of the credit essence and its important element is existence of trust between the two sides (in Latin “credo”, from which comes the word “credit”, means “trust”).
From the position of circulation of money forms (in the abstraction, historical process of formation economical relations and social budget and banking systems expressed by them) comparing different definitions of finances and credit, the paradox conclusion appears: credit is the private occasion of finances. And truly, from the position of movement of the money forms, finances represent the process of formation and usage of the funds of cash means. Very often such movements are fulfilled without returning, but sometimes, it is possible to give loans from the budget for the investment projects of other needs. Also, when a manufacture or corporations use their cash funds and we mean the finances of industrial subject, such usage may be realized as inside the manufacture or corporation (there is no subject about returning or not returning of the usage), so gratis under conditions of returning. This latest is called commercial form because of transmitting the sources to others, but even in this occasion, it is the element of financial system of the manufacture and corporation.
From the point of cash means movement, main character of credit is the process of formation and usage of the funds of cash means under the conditions of returning and, as a rule, taking the value-percentage. If gating the credit value doesn’t take place (even in the exceptional occasions), according to the movement form, credit becomes a private occasion of finances, as from the net financial funds (consequently from the state budget) the loans which bear no interests may be used. If gating credit value takes place, by the appearance form, credit is discussed to be financial modification.
From the historical point of view, finances (especially in the sort of the state budget) and credit (beginning with usury, later commercial and banking) were developing differently for considering credit to be the part of finances. Though, from the genetic-historical point of view, previous loaners, before giving loan, needed gathering the permanent capital not returning, that is the net financial foundation. The banks analogously needed concentration of the important own capital for influxing the consumers’ means and for getting higher percentage rate under the conditions of returning. Herewith, exactly on the financial basis, in the sort of financial fund (which later partially becomes loan fund) part of the bank capital appears to be the reservation (insurance) part of the fund, which by nature is financial and not loan. So notwithstanding the essential distinctions between finances and credit form the genetic-historical point of view, credit appears to be formed from finances and represent their modification.
From the essential position of expressing economical relations of finances and credit, we meet with cardinal distinctions between these two categories. Which mostly expressed by the distinction of the movement forms notwithstanding they are returnable or not. Finances express relations in the aspects of distribution and redistribution of social product and part of the national wealth. Credit expresses distribution of the appropriate value only in the section of percentage given for loan, while according to the loan itself, a only a temporal distribution of money sources takes place.
Herewith, there is a lot of common between the finances and credit as from the essential point of view, so according to the form of movement. At the same time, there is a significant distinction between finances and credit as in the essence, so in the form too. According to this, there must be a kind of generally economical category, which will consider finances and credit as a total unity, and in the bounds of this category itself, the separation of the specific essence of the finances and credit would take place.
Funding of the cash means is common to the researched economical categories. It takes place in any separate system of finances and credit, which have been touched upon during the analyses of defining finances and credit. Word combination “funding of the cash sources (fund formation)” reflects and defines exactly essence and form of economical category of more general character, those of finances and credit categories. Though in the in economical texts and practice, it is very uncomfortable to use a termini, which consists of three words. Also, “unloading” with an information hardens greatly its influxing into the circulation even in the conditions of its strict substantiation and thoroughness.
In the discussing context we consider:
1) wide and narrow understanding of economical category of the finances;
2) discussing finances in narrow understanding under general traditional meaning;
3) discussing finances, as funding of the cash means, in wide understanding, which concerns finances – in narrow meaning and credit – in complete meaning.
Termini “funding” and its equivalent “fund formation” are used by us as the purposeful structuring of cash means, which is based on two poles – accumulation of money sources (gathering) and its usage for definite purpose in the way of financing and crediting.
We have established a new termini – “finance-investment sphere” (FIS). Analyses about interrelation of finances and credit made by us give us an opportunity of proving, that in the given termini, the word “financial” is used with the meaning of funding cash sources, its purposeful structuring. In this process we consider at the same time financial, credit and investments’ economical categories.
Let’s sum up middle results of discussing new concept – “finance-investment sphere” and discuss its investment consisting parts.
The concept “investments” was brought into the native economical science from the West. In the Soviet economical science they for a long time used in the place “investments” the termini “capital placement”, which expressed the usage of the industrial factors in the sphere of real industrial activities during realization of capital projects. From one glance, this termini in its concept is identical to the “investments”, consequently it is possible to use them as synonyms. Though the termini “investments” and “investing” have the advantage towards the termini “capital placement” from linguistic and philological points of view, because they are expressed with one word. This is not only economical and comfortable in the process of working with the termini “investment” itself, but also it gives an opportunity of termini formation. More concretely: “investment process”, “investment domain”, “finance-investment sphere” – all these termini are much more acceptable.
Changing native economical termini with foreign ones is purposeful, if it really matters (by keeping parallel usage of the native termini for the inheritance). Though we must not change native economical termini into foreign ones all together, when by ordinal traditional language easy to explain private and narrow concrete processes and elements get their own termini. The “movement” of these termini is approved in the narrow professional bounds, but their “spitting out” into the economical science may turn economical language into the tangled slang.
Let’s discuss termini – “investment” and “capital placement’s” usage in the economical literature.
Investments are placement of funds into the main and circulation capital for the purpose of getting profit. “Investments in material assets – are the placements of funds into the mobile and real estate (land, buildings, furniture and so on). Investments in financial assets are the placements of funds into the securities bank accounts and other financial instruments”.
We don’t meet with the termini “investments” in the earlier economical dictionary, but we meet the combined termini “investment policy” – the union of the industrial decisions, which guarantee main directions of the capital investments, the activities of their concentration in the determinant suburbs, on which the reaching of planned rates of development of the society production is depended, balancing and effectiveness, getting more and more production and profit of the national income for every lost Ruble”. For today, in the most actual definitions, the capital investments are bounded only by financial means, when not only financial, but also the investment of natural, material-technical and informational resources takes place. Labour resources take an actual place in the investment process. They themselves fulfill this or that investment process.
A positive side of the discussed definitions is that they connect investment policy and capital placements (investments):
– economical development according to the key directions to the concentration;
– providing high rates of economical growth;
– raising an economical effectiveness, which is expressed:
a) by growing the throw off of the production and national income for every lost Ruble;
b) by fulfilling the branch structure of the investments;
c) by improving their technological structure;
d) by optimization of their further production structure.
Compared with such definition of the investments (capital placement) the definition of investments in the dictionary attaching the “Economics” seems to be unimproved: “investments – the expenses of gathering production and industrial means and increasing material reserve”. In this definition current expenses (production expenses) are mixed with the investment (capital) expense. Also, not the investment expenses but (though the investments are followed by the appropriate expenses) exactly advancing. It differs from the expenses by that the means (means) are put by returning the advanced values, also, under the conditions of growth, to which the concept-advanced capital is corresponding. the advancing may be realized in the money, natural-material and informational forms.
Except the termini “investments”, there are two more termini related with the investment. They are shown below.
“Human capital investment” – any activity provided for rising the workers labour productivity (in the way of growing their qualification and developing their abilities); at the expenses of improving the workers’ education, health and raising the mobility of the working forces”. It is very useful to use the mentioned termini, though it needs one correction: the human capital investments do not concern only workers, but also the servants, representatives of every kind of labour.
“Investment commodity, capital goods – a capital.”
In the official manuals of political economy of the reformation time the capital investments are discussed as “expenses for creating new main funds and widening, reconstruction and renewing the active ones”. In this definition the investments (capital placements) during separation of the forms (types) of further production of the main funds are bounded only by main funds (without increases of the circulation funds and insurance reserves):
a) creating new ones;
Also, the concept of the industrial gathering appears, at the expenses of widening of basic, circulation funds and also insurance reserves takes place”.
You’ll meet below the definitions of investments from “the course of economy”: the investments are called “placements of fund into the basic capital (basic means of production), reserves, also other economical objects and processes, which request long-termed influxing of material and cash means. “According to the division of capital into physical and money forms, the investments too must be divided into material and cash investments”.
They apportion investment commodity, to which belong industrial and nonindustrial building objects, vehicles purposed for changing or widened technical park and the furniture, increasing reserves and others.
“They call the total investments of production an investment product, which is directed towards keeping and increasing the basic capital (basic means) and reserve. Total investments consist of two parts. One of them is called the depreciation; it represents important investment resources for compensation of renewal till the level of before industrial usage, wearing out and repairing of the basic means. Second consisting part of the total investments is represented by net investments – capital investments for the purpose of increasing basic means”. Depreciation is not a compensation resource of wearing the basic funds out, but it is the purposeful financial source of such resources.
Human capital investment is “a specific kind of investments, mostly in education and health protection”.
“Real investments are the investments in the economical branches and also, they are kinds of economical activities, which provide influxing the increases of real capital, that is increasing material values of the industrial means”. We can agree with such definition with one specification that material and nonmaterial values too belong to the real capital (wealth), consequently science-researching experimental-construction results, various information, education of he workers and others. Such service as organization of the excitable games, also the service of redistribution social wealth from one private person to another (except charity).
“Financial investments represent placement of funds into the shares, obligations, promissory notes, other securities and instruments. Such investments, of course, do not give increases of the real material capital, but they help getting profit, consequently at the expenses of changing the course of the securities in the time of speculation, or distinguishing the course in different places of sell and purchasing”. We share wholly such definition, hence it follows that financial investments (if it is not followed by real investments as a result) do not increase real material wealth and real nonmaterial wealth. According to this context, the expression below is very important: “we must distinguish financial investments, which represent placement of the funds in the ways of selling and purchasing the securities for the purpose of getting profit and financial investments, which become cash and real, moved to real physical capital.”
In the “economical course” quoted before long and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or more” investments. If we get such conditioned criteria, that we can call the investments which overcome the terms of some months, long-termed ones, which is very doubtful and we don’t agree with it. A long-termed character of the fund placement is a significant feature of the investments (short-term doesn’t combine with the concept of investments). Principally, it would be better to point out quick compensative, middle termed compensative and long-termed compensative investments:
– less then 6 months – quick compensative;
– from 6 months up to the year and a half – middle termed compensative;
– more then the year and a half – long termed compensative.
We stopped at the definition of the investments in the capital work “economical course” for the special purpose, as, in it the author tried to discuss the concept of investments systemically and quite completely, herewith the book is published just now.
We’ll return to the discussion the definition economical category of “investments” in different publications in the following chapter. The definitions given here are quite enough for having a notion of the level of lighting up the given category in the economical literature.
What conclusions may be made according the definition of the mentioned economical category in the published works, except the made notions and specifications?
There is quite deeply, concretely and thoroughly defined the concept of “investments”, different definitions in the economical literature; but mostly in every works about the investments discussed by us until now, there is not opened the essence of investments as an economical category. In every monograph , even if it has a title investment, as an economical category , there is given only the definition, concept of investments. But, as the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing feature of the researched object. A concept out of much essential characteristic features represents only one, and essential in it is only – definition”.
But the categories are much wider; it is “a key, the most fundamental concept of every science”. Economical categories theoretically represent real, objectively existed productive relations. A category is the defining of occasions of existed characters, connections, relations of the objective world. Generally, any educational process is fulfilled by the categories, which give opportunities for dividing the processes and occasions semantically, for expressing the definitions of a subject and realize their specific peculiarities and economical relations of a material world.
Our goal is exactly to substantiate investments – as an economical category and also, as a financial category in the narrow understanding.
Here we apply for another manual thesis made by the academician Vasil Chantladze: “every financial relation is an economical one and every financial category is and economical one, but not every economical relation and economical category is financial relation and financial category”.
In the process of defining the investments, it is important to take in mind the sides of resources, expenses and incomes, because investment, from one side, is the result of the manufacture’s activity, and, from another one, – a part of income, which, in this case, is not used for usage.
Another occasion: it is advisable to discuss investments in two aspects: as a category of reserve and flow, which will reflect exactly the connection between “placement of funds” and “investments”.
As we’ve mentioned above, not long ago, in the well-known Soviet literature the concepts of “the placement of funds” and “investments” were accepted to be the synonyms and concerned to be investment of sources for further production of the main funds and formation of the turnover funds. We meet with such understanding of the concept of “investment” (here, they separate three types of the investment expenses: investments in the basic capital of investments, investments in the house building and investments in the reserves) in the modern economical publications and it is mostly used on the macro level during a statistical analyze of economical processes. In this concrete occasion investment is the category of reserve.