Monthly Archive June 2016

Business Mathematics I – BBA |BBA-BI|BBA-TT|First Semester|Syllabus

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Business Mathematics I | MTH 101

BBA/BBA-BI/BBA-TT First Semester|Pokhara University

Course Objectives

The purpose of this course is to provide basic knowledge of algebra, equations and functions for business applications. The course also attempts to impart the knowledge of mathematics of finance, systems of linear equations and matrices to handle various problems related to business and economics.

Course Description

This course starts with basic topics of algebra. Unit I and II cover sets and real numbers, linear equations and functions and their applications. Unit III is concerned with quadratic and other special equations and functions. The exponential and logarithmic equations and functions will be covered in Unit IV.  Unit V is devoted exclusively to matrix and determinant whereas Unit VI is devoted to mathematics of finance.

Course Outcomes

By the end of this course, students should be able to:

  • understand basic algebraic skills and their applications;
  • apply different set operations to solve the related problems;
  • express and solve business related problems by using equations and inequalities;
  • understand the concept of function and visualize the graphs of various types of functions;
  • understand the time value of money and solve the problems related to appreciation, depreciation, annuities;
  • apply matrix operations to solve the problems related to business and economics.

Course Contents

Unit I: Algebraic Concepts                                                                                                                           10 hours

Integral Exponents, Radicals and Rational Exponents, Operations with Algebraic Expressions, Factoring, Algebraic Fractions, Permutation and combination, Sets, Real Numbers.

Unit II: Linear Equations and Functions                                                                                 8 hours

Linear Equations and Inequalities in One Variable, Functions, Linear Functions, Graphs and Graphing Utilities, Graphical Solutions of Equations, Solutions of Systems of Linear Equations (up to Three Equations in Three Variables), Applications of Functions in Business and Economics (Total Cost, Total Revenue, and Profit; Break-Even Analysis; Supply, Demand, and Market Equilibrium).


Unit III: Quadratic and Other Special Equations and Functions                   6 hours

Quadratic Equations (Factoring Methods, the Quadratic Formula), Quadratic Inequalities, Quadratic Functions: Parabolas, Business Applications of Quadratic Functions (Supply, Demand, and Market Equilibrium; Break-Even Points and Maximization), Special Functions and Their Graphs, Polynomial and Rational Functions, Piecewise Defined Functions, Modeling; Fitting Curves to Data with Graphing Utilities.

Unit IV: Exponential and Logarithmic Equations and Functions                  6 hours

Exponential Functions, Modeling with Exponential Functions, Logarithmic Functions and Their Properties (Logarithmic Functions and Graphs, Properties of Logarithms, Change of Base), Modeling with Logarithmic Functions, Solution of Exponential Equations, Applications of Exponential and Logarithmic Functions (Growth and Decay, Economic and Management Applications, Gompertz Curves and Logistic Functions).

Unit V: Matrices and Determinant                                                                                                           8 hours

Matrices, Matrix operations, Matrix equations, Determinant, Inverse of a Matrix, Cramer’s Rule, Leontief Input-Output Models.

Unit VI: Mathematics of Finance                                                                                                              10 hours

Simple Interest (Simple Interest, Arithmetic Sequences), Compound Interest (Compound Interest, Geometric Sequences), Future Value of Annuities (Ordinary Annuities, Annuities Due), Present Values of Annuities (Ordinary Annuities, Annuities Due, Deferred Annuities), Loans and Amortization (Unpaid Balance of a Loan).

Basic Text

Harshbarger, R. J., & Reynolds, J. J. Mathematical Applications for the Management, Life, and Social Sciences. USA: Brooks Cole.


Budnick, F. S. Applied Mathematics for Business Economics and the Social Sciences. New Delhi: Tata McGraw-Hill.

Shrestha, K. K., & Thagurathi, R. K. Applied Mathematics. Kathmandu: Buddha Academic Enterprises.



Methods of collecting Primary Data – Business Statistics | POM

Business-statisticsReferene Notes | Management
Methods of collecting Primary Data
Business Statistics

Primary Data are the original and fresh data or we can say the first hand data collected for specific purpose of study and it happened to be original in character. These data have not been previously assembled or collected for any known project. Primary data are usually collected by conducting sample survey or experiment, and the data generated by these methods are correspondingly called survey data and experimental data.

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Characteristics of Social Groups | Sociology

social groupCharacteristics | Nature of Social Groups

Social Group is an aggregate collection of persons having a common interest and interacts with each other and share similar characteristics and a sense of unity.The nature of social group is either formal or informal. When there are rules and regulations, scheduled meeting times, official roles assigned to members then it is called formal social group which is mainly created by the organization. Informal social groups lack formality and there may be unwritten values which governs the interaction of the members of the group (group of friends, family, etc.).Some of the important characteristics of social groups are as follows:


  • Collection of Individuals:

Social group is the collection of individuals which are the base of social groups. Just as a college or any other institutions cannot be imagined without students and teachers, etc. a group cannot be imagined without people. People are the most important for any group.

  • Interaction among Members:

Interaction is the basis of social life and in every social group there must have regular interaction among its members. Only having a collection of individuals does not make a social group if the members do not interact with each other.

  • Mutual Awareness:

Just gathering of people cannot form a social group. Mutual relations are considered essential for the formation of a social group. The members inter-related to each other and they are aware of one another. Their behavior is determined by their mutual recognition.

  • We feeling:

The sense of we-feeling is most important for any social group. This helps to create group unity among the members and also develops sympathy and co-operation among the group members which is necessary for the smooth running of the group functions.

  • Common interests and Group Unity or Solidarity:

People generally form groups in order to fulfill common interests and needs. An individual may join several such groups, as political group, religious group, economic group, educational group, and so on, in order to fulfill her varied and objectives which are identical to other members of that group .The common interest ties the members of a group and they form a sense unity. By virtue of such sense, members of develop loyalty or a feeling of sympathy among themselves.

  • Group Behavior:

Group behavior is the social process by which people relate and respond to each other and perform their respected roles as member of the group. Group behavior is guided by a basic unity of purpose and identity of interest. As being a group member all the members in a group behave more or less in a similar way for the achievements of interests and goals.

  • Group Norms:

Rules and norms vary from group to group. Thus Group norms like customs, folkways, mores, traditions, conventions (rules), laws etc. which may or may not be in written form, should be followed by the member of the group and every group has its own means of rewarding, correcting and punishing people if they break the values and norms.

  • Size of the Group:

Every social group is different in their sizes. A group may be small as a dyad or big as a political party. In small groups people seem to be more unified, and in large group people seem to be less unified and satisfied.

  • Groups are Dynamic:

Groups are Dynamic in nature. Groups experience changes either because of internal or external pressures or forces. For instance, although some groups like families are permanent in nature, they gradually go under changes since old members die and new ones are born.

  •  Influence on Personality:

Every human being learns the culture like language, norms, beliefs etc. from the members of his group which help him/her to adapt in the environment. Social group provides opportunities of interactions for its members where they can sharpen and flourish their talent and skills.

  • Stability:

Stability is one of the important characteristics of social group. Groups are permanent or temporary in nature. Stable groups are family, school group etc. and unstable groups are like the crowd, etc.

Source: Fundamentals of Sociology (Buddha Publication)



Features of Organizational communication

orgFeatures/Characteristics/Nature of Organizational communication | Principles Of Management

Organizational Communication is the process by which different activities of an organization are controlled and co-ordinated to reach toward goals. Simply we can say ,it is the way of exchanging ideas ,meaning and understanding between two or more than two people either through verbal means or through non-verbal means.

Communication is one of the most important functions of management. A manager must communicate with its subordinates to implement plan and get feedback about the performance.

Features/Characteristics/Nature of Organizational communication

1)Two parties:

Organizational communication involves two parties. Sender sends message and receiver receives message and understands as intended by sender.

2)Two way process:

Organizational communication is a two way process.Communication becomes complete when both parties  are informed that their communication becomes meaningful in the real sense.

3)Pervasive function:

Organization communication is universal process.Communication takes place at  every level and in every kind of organization.

 4)Formal or informal:

Communication may be formal or informal. Formal communication is based on a standard set of relationship and it has prescribed chain of command. On the other hand, informal communication is not based on standard set of relationship and has no such prescribed chain of command

5)Continuous process:

Organizational Communication is continuous process. If there is no communication, there is no functioning in the organization. Until the existence of organization, the communication continuously exists. It is continuous process

6)Oral and written:

Communication may in the form of both oral and written. Written communication is the form of formal communication. Same type of communication will be for all in the organization. However, oral communication takes place between information disseminators and listeners. Oral communication may in the form of informal or formal.

7)Complete process:

It is the most important feature of organizational communication. Incomplete information may not contribute achieve organizational objectives The real sense of effective communication depends upon the complete process.


Source : Principles Of Management ( Asmita Publication)


Difference Between Descriptive and Inferential Statistics – Business Statistics



Reference Notes
Difference between Descriptive Statistics and Inferential Statistics | Business Statistics

Statistics is the art of collecting, analyzing, presenting and interpreting data.


Statistics is sub-divided into two categories:

  1. Descriptive Statistics
  2. Inferential Statistics

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Managerial Skills | Principles Of Management

skillManagerial Skills | Principles Of Management

A managerial skill is an ability of managers to make a business decision and lead subordinates within a organizations to perform tasks efficiently and effectively. Simply we can say managerial skills is the knowledge and ability of the manager to carry different activities and make a reliable decision during complex problems.

Each and every manager in any organization need managerial skills and abilities to carry out various management functions. The corresponding management skills required for different managers of different department are as follows:

Technical skill:

Technical skills involve use of tools techniques, and procedures that are required to perform an organizational role. Technical Skill is the ability to perform a specialized task that involved a certain method or process. This skill is particularly important at the lower levels of the organization where the manager needs to know how the work is done. For top-level managers, these abilities tend to be related to knowledge of the industry and a general understanding of the organization’s process and products. The lower-level managers or supervisors need technical skills because they have  to see that  goods and services are produced and delivered or not.

Human skill:

Human skill is the ability to understand, communicate, motivate, coordinate, lead and control the behavior of other individuals and groups. It reflects the leadership ability of a manager. An understanding of human relations and organizational behavior is most important to managers in the middle management hierarchy. Middle level managers are concerned with directing lower level supervisors and other middle managers.

Conceptual skill:

Conceptual skill is the ability to identify problems and resolve problems for the benefit of the organization and everyone concerned. It is most important at the upper levels of the organization where long-range forecasting and planning are the main activities. Managers use these skills when they consider the role of the business in its external environment.

Source : Principles Of Management ( Asmita Publication)




Functions of Management | POM

funcFunctions of Management | Principles Of Management

Management is the process of managing and working with people to accomplish organizational goals. The functions of management include planning, organizing, staffing, directing, coordinating, leading, controlling etc.



Planning is the primary function of  management.Planning is concerned with the determination of goals to be achieved and the course of action to be followed. Planning sets the goals and decides how to achieve them. It discovers alternatives and choose course from among future of action alternatives. It is a rational and intellectual process, which is concerned with deciding in advance what is to be done in the future. Thus, planning the process of establishing goals and choosing a course of action for achieving those goals.


Organizing means grouping activities, assigning activities, and providing the authority necessary to carry out the activities Organizing may be defined as identifying, assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. All the tasks necessary to achieve goal are assigned to people and creating authority-responsibility relationship among them.


Staffing is the human resource management function in organization. It is the process of determining human resource needs and recruiting, selecting, training and developing human resources. A manager decides how many and what kind of people a business needs to meet its goals and then recruits, selects, and trains the right people. Thus, it is hiring and assigning people to carryout tasks.


Leading is the process directing, motivating, and communicating with employees to perform tasks for goal achievement. It is concerned with interpersonal aspect of managing and directing the activities of others. Managers work with people and resources to accomplish organizational goals. Leading takes place in teams, departments and divisions. To be good leaders, managers must be knowledgeable about human behavior, the concept of leadership, and communication.


Controlling is the management function of monitoring progress and making needed changes. It measures and corrects the performance to achieve planned targets. Planning, or and leading do not guarantee success. Controlling monitors progress and implements necessary changes. It is the process of measuring and comparing operating results with the plans and taking corrective results when results deviate from plans.

Source :Principles Of Management ( Asmita Publication)


Importance of Capital Budgeting | Finance

capitalImportance of Capital Budgeting | Finance

Capital Budgeting is the long term investment planning, analyzing and deciding process used to evaluate and select capital expenditures consistent with the firm’s goal of owner wealth maximization. Capital expenditures are the long term investments made to expand, replace or renew fixed assets or to obtain some other less tangible benefit. Capital budgeting process contains five distinct but interrelated steps beginning with proposal generation, followed by review and analysis, decision making, implementation and follow up.

Capital Budgeting or investment decision requires special attention because the following reason can be explained the following manner:


A firm’s decision to invest in long term assets has a decisive influence on the rate and direction of its growth. A wrong decision can prove disastrous for the continued survival of the firm. On the other hand, inadequate investment in asset would make it difficult for the firm to complete successfully and maintain its market share.


A long term commitment of investment  may also change the risk complexity of the firm. If the adoption of an investment increases average gain but curser frequent fluctuations in its earning, the firm will become more risky.


Capital Budgeting decisions require large amount of funds which the majority of the firms cannot provide .Since,Investment decision generally involve large amount of funds which make it imperative for the firm to plan its investment very carefully and make an advance arrangement for procuring finances internally or externally.


Capital budgeting is not reversible.This means that once we made capital budgeting decisions they are not easily reversible.This is because there may neither any market for such second-hand capital goods nor there is any possibility of conversion of such capital assets into other usable assets It is difficult to find a market for such capital items once they have been acquired.The firm will incur heavy losses if such assets are scrapped.


Investment decisions are an assessment of future event which are difficult to predict. It is really a complex problem to correctly estimate the future cash flow of an investment. External Environment causes the uncertainty in cash flow estimation.

Copyright: Shankar Mishra


Characteristics of Bonds| Finance

bondCharacteristics of Bonds| Finance

A bond is a fixed charge bearing long term debt security issued by the government and non-government organization to collect long term debt capital in which borrower agrees to make payments of interest and principal on the specific dates to the holder of bond instrument.

There are different types of bonds which are introduced by the different organization with the development of market. As a it is difficult to generalize the same characteristics of all types of debt instrument. However, some common characteristics to all debt instruments are as follows;

1)Par Value

Par is the value which is specified in the at the time of issue of bond no matter whether the bond is issued in the market premium or discount. It is also called as face value or maturity value principal.

Generally bond is issued in denomination of Rs 1000. But, it can be issued in multiples of Rs1000 also. In the context of Nepal, bonds must issue in denomination of Rs 1000. Par value is always repayable at the end of maturity period no matter whether the bond is issued at premium or discount.

2) Coupon Interest Rate

Coupon rate is the rate which is specified on the bond certificate. Bond has in general fixed interest rate that remains same up to maturity period. Rupee amount of interest is calculated on the basis of par value even if the bond is sold at premium or discount.

Generally interest is paid on annual basis as well as semiannual basis. The borrower needs to pay fixed interest in each period up to maturity period. In general, the interest rate at the time of bond issue is equal to market interest rate. Bond’s interest rate remains same up to maturity period but market interest rates do not remain same. It changes with the change in demand and supply condition in the market sometimes, however, zero coupon bonds are issued that make no interest payment. Zero coupon bonds are always sold at discount and redeemed at par.

3) Maturity Period

Almost all bonds are issued with finite time period. An investor has right to receive interest in each period upto maturity and right to receive principal at the end of maturity period. The maturity period which is set at the time of bond issue is called original maturity. Of course, the effective maturity of a bond declines each year after it has been issued. The remaining maturity period until the bond matures is called time to maturity. Sometimes however, perpetual bonds are issued without keeping maturity period.

4) Call Provision

Call provision refers to the provision that provides the borrower the right to call the bonds for redemption before maturity period. The borrower exercises the call provision when market interest rate is less than that of bond’s coupon rate or the fund is no longer needed. The time period during which company cannot exercise call provision is called call protection period.

5) Call Price

Call price is the summation  of call premium and face value of a bond. When company exercises call provision, the borrower needs to pay certain premium along with face value to its bondholder.Call premium (Cal penalty) is the excess amount of call price over face value of a bond.

6) Trustee

 Trustee is the representative of bondholders; usually a bank acts as a watch dog to protect the interest of the bondholders. The trustee’s responsibilities are to authenticate the bond issue’s legality at the time of issuance, to watch over the financial condition and to initiate appropriate actions if the borrower does not meet any of these obligations which are specified in the bond indenture. In Nepal, a company must appoint a trustee to issue bond or debenture in the market

7) Sinking Fund Provision

 It is a special provision in which a certain portion of profit is kept as reserve in each year for the redemption of principal amount of bond. Most of the corporation can make periodic sinking fund payments to a trustee to retire a specified amount of bonds in each period.

8)Bond Rating

Bond rating is an indicator of the creditworthiness of specific bond issues.These ratings are often interpreted as an indication of the relative likelihood of default on the Part of the bond issuers such as Aaa, Aa, A, Baa, Ba .cetc. Investment grade bonds are bonds that have been assigned to one of the top four ratings (AAA through BBB by Standard and Poor’s; & Aaa through Baa by Moody’s). Speculative grade bonds are bonds that have been assigned to one of the lower ratings (BB and below by Standard and Poor’s Ba andbelow by Moody’s). Some of these low rated securities are called, derisively junk bonds.

9) Put Provision

Put provision provides the holder the right to sell the bonds back to the company before maturity period at a specified price when the company violates the terms and conditions which are specified in the bond indenture.

10) Convertibility

Convertible feature is used as a sweetener in a new bond issue (or less often a preferred stock issue) to enhance its marketability and/or lower the interest rate. When the bond is issued by keeping convertible feature, bondholders can convert their bonds into common shares of the same company on the option of the bondholder at a specified price within a certain period of time. This convertible feature enables the firm to sell a convertible security at a lower yield than it would have to pay on a straight bond.

11)Bond Indenture

Bond indenture is an agreement paper in which all the terms and conditions associated with bond issue are specified. The terms and conditions may be par value, mode of interest payment, assets pledged as collateral, call provision, call premium, restrictions (covenants) placed by the creditors, rights and responsibilities of the lender and borrower etc.

Copyright : Shankar Mishra


Business Management and Sociology

sociRelationship between Business Management and Sociology | Sociology

Business management is the process of management of different business activities to run the business smoothly. Sociology is comprehensively the study of human behavior, structure, institutions and development of society.

Sociology provides educational background to understand their employees and customers. Business leaders and entrepreneurs having a good knowledge of sociology are able in anticipating customers’ needs and are able to respond to employees’ problems.

Having a good knowledge of sociology helps business managers or administrators to develop their analytical thinking and capabilities. Sociological knowledge helps business leaders and various human resource managers in handling or dealing with their employees and customers in their workplace. If the business leaders and human resource managers have knowledge of sociology then it makes them aware of the cultural and social aspects that shape an individual so that each and every employee are respected as they know about their background and helps to avoid misunderstanding.

A business manager having sociological knowledge understand that certain phenomenon creates conditions that influence groups of people. So the business leader keeps in mind about the factors and tries to enrich their business by analyzing their society. For e.g. if birth rate of a country drop then the obviously the country must contain more aged people in a certain time. Analyzing this condition helps business managers to produce goods for old aged peoples.

A good relation with public is most important for any business manager. Understanding sociology helps every business manager to establish and maintain good public relations. Having a good sociological knowledge helps the business managers to understand which actions by the company will affect its customers based on their cultural and economic background. So, the business manager always keep in mind about their customers’ cultural and economic background and manufacture products or take decision on favor of their customers. This helps in maintaining a good public relation.

Thus, having a proper knowledge of sociology plays a vital role in business management. This helps them to get knowledge about people’s culture including their buying habits, income levels or their quality of life as a whole.

Source: Fundamentals Of Sociology (Buddha Publication)