Principles of Business and Banking

 According to Joseph Massie " financial management is operational activities of a business that is responsible for operating an effective utilisation of the font necessary for efficient operation" In general assumption that a financial manager work only in the account department or he/she has to deal with the cash flow. In reality they have a large area to cater. Finance  management is efficient management of fund, planning and organisation the matter related to money and also effect utilisation of economic resources. The basic aim is maximisation of wealth and ensure a fair return to stakeholder while maintaining the financial discipline in the organisation

 Definition One need money to make money. Finance is the life blood of business and there must be continuous flow of fund in and out of a business enterprises. Money makes the wheel of business run smoothly by sound planning, efficient production system, an excellent marketing network are all hamper in the absence of adequate and timely supply of fund. Sound financial management is as important in business firm requires finance to comment its operation, to continue operation and for expansion or growth. Finance is an important operative function of business. A large business form has to raise fund from several sources and has to utilise their fund in alternative investment opportunities fully stop in order to ensure the most judicious Dualization of phone and to provide a reasonable rate of return on the investment, Sound financial policy and programme are required. wise financial can save a business from Bankruptcy just as easily as quality product, better marketing or low product...

Sole trading concern/ Business is owner, manager, controlled and invested by a single person. Hence, it is called sole proprietorship or individual by a single person. Hence, it is also proprietorship or individual proprietorship or single entrepreneur or one-man business. It has been in operation since the birth human civilization. Sole trader make total investments of the business, enjoy form all profit and bears the total risk. He controls the operations applying his own knowledge, skill and ability. He may run the business alone or may obtain the help from family members or employees. The sole trader has to bear unlimited liabilities of the business. Sole trading concern is then oldest from of business. It is most commonly used business organization. It is easy to start and close. It requires small amount of capital. The sole trader plays the role of all i.e. an owner, manager, a controller, a risk bearer and a decision maker. Thus, it is popular form of business organizatio...

After the industrial revolution, modern business had been extended to the large-scale business with huge capital. And then businessman started to join their hand to run to business by sharing the investment and profits. Sole trading concern has numerous draw back limitations. To overcome such drawback businessmen start the partnership firms. Single man cannot invest and contribute effectively in a business. So, people started to operate the business through their joint efforts this concept of business is known as a partnership business organization. Under partnership, they contribute capital, distributes profit and loss, manage and control the operation, and take the decision jointly for betterment of business. Hence, partnership an agreement between two or more persons to carry the business for their mutual benefits. The agreement of partners is called partnership deed. Persons who have entered into the partnership are individually called partners and collectively known as partnershi...

The requisites are those components or engender element that are necessary require for the successfully operation of a business. The considered that are made before establishment of business, business are not sufficient for the success at all times. Proper management of human and other resources, clears/well define goals and well objective, sound structure, of all time for the successful operation or running of business. Followings are the requires of business Well define goals and objectives: One of the important requires is well define goals. Such types of goals and objective provided us future targets and cruces of action to be performed to a chip. Such objective and targets unclear then business can't do success. Proper planning correct planning: Proper planning helps to reduced future risk and unpretentious. Planning give guide lines about what to do? When to do? Which is responsible to do? How the activities can be done? Etc. it is prepares policies and strategies at the bus...

Starting a new business is not an easy. The birth of a new business is similar ti the birth of a human child. An entrepreneur has to play the role of a mother giving birth to baby and taking care of it for its upbringing. A business has to perform so many work before starting his/her business which many be called as promotional activities. As a promoter, the businessman has to generate an idea of a new business. Promotional work beings with origin of an idea. If a business. Promotional work begins with the origin of ideas. If a business is rightly promoter, then it will get success in the future otherwise it won't. Many business firm have been closed sooner or later due to its defective promotional activities. Knowledge about the business and selection of business: Selection of business is most important factor to be consists before starting new business. The business man should carefully consider whether the start and a industry or a trade or an auxiliary of trade or a service bus...

Business is an important activity of human beings. The word' Business' literally means 'a state a of being busy'. All economical activity undertaking with a view to earn profit thus the satisfaction of human wants can be term as a business. Involves regular production, distribution and exchange of goods and services with an objective of earning profit by satisfying the unlimited wanted of human being. All business activates are meant for earning profit by satisfying consumers. Business has got two concepts, they are Traditional concepts: The traditional concepts explains that the business of business is to earn profit thought production and marketing of products may be of different types for example physical goods, services, ideas and maximize only profit as per traditional concepts Modern concepts: consumer satisfaction is the central point of modern concepts of business. Profit can be earned by maintaining social responsibility. It survives to include every aspects ...

Management is an Art Art consists different components like knowledge and skill that are applied to achieve some specific goals. The skills should be practiced regularly by the artist. Management also consists different components that are reflected top art. Therefore it is also regarded as an art Marry Porker Follet has defined, "Management as an art of getting things done through other people,” Management consists following things components of art. Knowledge, skills and creativity of person. Applied in practices. Regularity Result oriented. Improvement through continuous practice. Management as a science Science is a systematic body of knowledge developed by research, experiences, experiments, observation etc. science is valued and verifiable. According to J.M. Keynes,” Science can be defined as a systematized body of knowledge which established the relationship between cause and effect.” Management can also be considered as a science because...

 According to section 69 of BFIA when a bank or financial institution wants to merge with one another or acquire one under section 70. following steps needs to take. 1.      Decision by directors:  first the BFIS involves to decide to merge or acquire through their board of director 2.      Joint application:  They should submit a joint application to the NRB for the initial approval. This application should include followings. Reason and impact:  Why they want to Merge or acquire and how it will be affect the bank and financial sector and the country financial system. Financial reports;  Recent auditors report including balance sheet, profit and loss account, cash flow and net worth. Credit protection:  Plan to protect the interest of BFIS Creditor during merger or acquisition. Assets and liabilities detail ; A reports to an assets and liabilities along with timeliness for ...

 The Bank and Financial Institutions (BFIs) can merge  or one can acquire another under the provision of Bank and Financial Institutions Act (BFIA), by Following the procedure outline by the act Section 69 of BFIA and NRB Act. However, Class 'D' Financial Institutions may be merged with one another in same class and an infrastructure development bank and a regular bank or financial institution cannot merge or acquire each other. if the condition found in an inspection and supervision reports by Nepal Rasta Bank (NRB), the NRB can order bank or financial institutions to merge one with another or have some of its assets, liabilities or business can merge with another. These condition are according to section 69 (3) of the BFIA is following inadequate capital funds or deteriorating financial position over the last three years Action that harms depositors' interest or a situation that poses such risk. the need to enhance competitiveness at a national and international level for...

  Following are the entities of the financial system of Nepal. Bank and Financial institution -- Regulated by NRB Insurance companies -- Regulated by Beema Samiti Capital Market -- Regulated by SEBON Mutual Funds -- Regulated by SEBON Co-operatives - Regulated by Sahakari Bhivag Contractual Funds (saving Institutions) -- Regulated By GoN Nagarik Lagani Kosh (CIT) KArmachari Sanchaya |Kosh (Employee Provident Fund) Samajik Surakchya Kosh (Socail Security Funds-SSF)

BAFIA was introduced to promote public trust towards Banking and Financial Institutions. AS the Number of banking institutions increased rapidly, to control the number of Banking Institutions and increase the service quality Banking and Financial Institutions Ordinace 2061 (BAFIO-2061) was issued by the king. After the political change in Nepal, the parliament Change BAFIO-2061 ordinance into act by combining other Banking Institutions Acts into one Single Act Banking and Financial Institutions  Act (BFIA). which was later amendment into BFIA 2073 Development of banking acts in Nepal. Nepal Bank Act 1993 Nepal Rastra Bank Act 2012 Agriculture development Bank Act 2024 Nepal Infrastructure Development Co-operation Act 2046 Banijay Bank ACt 2031 Bitta Company Act 2042 Bikas Bank Act 2053 all above mention act are unified into the one Act which is called Banking Financial Act (BFIA ) in BS 2063 which was later amended and including arising issue at that time which was effected fr...