Monthly Archive April 2016

Characteristics Of Marriage | Fundamentals Of Sociology

marriageCharacteristics Of Marriage | Fundamentals Of Sociology

Marriage is a physical,legal and moral union between man and woman in complete community life for the establishment of a family.The emergence of marriage was to regulate and control the sex life of man especially after the end of sex communism in the early stage of human social evolution.

Characteristics of Marriage

  1. Universality: Marriage is more or less a universal institution ie; it is prevalent everywhere among literate as well as illiterate,everywhere territorial as well as hunter gatherer.For eg:in Japan celibacy is publicly condemned; in korea unmarried persons are called ‘Half persons’ . Among Hindus marriage is a sacred phenomenon which every Hindu member should do.
  2. Relationship between man and woman: Marriage is the union of man and woman which indicates the relationship between one or more men to one or more women that occurs under different pattern of marriage.
  3. An enduring bond: It is the long lasting bond between husband and wife.It excludes those sexual relationships like with prostitutes who are not santioned by custom or law or religion.
  4. Marriage requires social Approval: Marriage between man and woman becomes a nuptial bond only when it is approved by the society.Social approval is an ultimate way to get legal recognition.
  5. Marriage is associated with some civil or religous ceremony: Among each and every socio-cultural and religous group ,marriage gets its social recognition through some ceremonies.It suggests that marriage has to be concluded in a public and solemn matter.
  6. Marriage creates Mutual Obligation: Marriage imposes cetain rights on both husband and wife.

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Liquidity Ratios(Current,Quick,Cash) | Finance I

liquidity

Liquidity Ratios(Current,Quick,Cash) | Finance I

Liquidity Ratios:

Liquidity ratio is an financial ratio which measures the liquidity position and short term solvency indicating the company’s ability to meet short-term obligations.The most common ratios under this group are:Current ratio,Liquid or quick or acid test ratio and cash ratio.

      1.Current ratio(Working Capital Ratio)

       Current ratio is the relationship between current assets and current liability.The main objective of this ratio is to measure the ability of the firm to meet its short term obligations.

Current Ratio= Current Assets /Current Liabilities

Note: Higher the current ratio better is the liquidity position of the firm.If it is less than standard ratio,it shows the bad solvency position and vice-versa.For many type of business ,2:1 is considered to be an adequate ratio. Low current ratio indicates that cash ,marketable securities,accounts receivable inventory should be increased.

      2.Liquid Ratio or Quick Ratio Or Acid Test Ratio:

    The purpose of this ratio is to test the ability of the firm for immediate payment of current liabilities.The relationship between quick(liquid) assets and current liability is termed as quick ratio.Quick Assets includes all the current assets other than stock and prepaid.

Liquid or Quick Ratio= Liquid or Quick Assets/ Current Liabilities

Note: More or less standard ratio is not favourable for the firm. The liquid ratio of 1:1 is considered to be an adequate ratio.

    3.Cash Ratio:

       Cash Ratio is calculated by dividing high liquid assets by current liabilities.

Cash Ratio=  (Cash +Marketable Securities)/ Current Liabilities

Note: A low cash ratio may not matter if the firm can borrow on short notice.

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Ratio Analysis|Uses Of Financial Ratio | Finance I |Management

ra

Ratio Analysis|Uses Of Financial Ratio | Finance I |Management

Ratio Analysis:

Ratio Analysis is an meaningful technique of measuring operating performance and evaluating managerial performance of a firm. In other words it is an assessment or evaluation of financial activities and mapping the results to point out basic strengths and weakness.

Uses of Financial Ratio

  • It helps to analyze the liquidity position or the ability of the firm to meet its current obligations.
  • It helps to increase the operating efficiency and performance of the firm.
  • It utilizes various assets in generating sales revenue.
  • It is also useful for assessing the long-term solvency or long-term financial viability of a firm by borrowing funds.
  • It helps to compose between the corporations within industry.
  • It is helpful to measure the overall profitability of the organization.
  • It helps to locate the weak spots of business.
  • It is also helpful for making financial decision of firm.
  • It is also helpful for future forcasting, decision making ,corrective actions and cost control.

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