Excited about business but dreading the bookkeeping?


Every business owner irrespective of the size of their business is thrilled to get new leads. Just the fact that the marketing efforts are beginning to bear fruit is great positive sign. But there is a downside when it comes to small businesses. Although business owners are enthusiastic in the beginning stages, they are bummed out when it comes to the bookkeeping. This is because most of them take care of this task themselves.

Yes, bookkeeping is fairly easy as it is not as advanced as accounts so a lot of business owners do it themselves. All is well and good till such time the business begins to grow. Invariably the amount of transactions increase and bookkeeping starts to become a pain. It is a time consuming task that demands a great deal of attention. There is no room for error as this forms the basis of accounts. Hiring bookkeepers to do the job will only be a liability to the company in the long run.

Wondering if there is a solution?

There is and it lies in outsourcing. There are BPO's today that specially cater to the small business market. Outsourced bookkeeping services is among the popular services offered by them. If you are small business owner looking for bookkeeping help, this is your best bet. It is amazingly cost effective and therefore great value for money. With outsourcing, you no longer need to dread bookkeeping.

In the study of Montainge, what is the Humanist’s Solution


In such a situation a humanist not merely relaxes and ignores the problem. He must call upon his studies, his philosophy, and his ancient friends, to guide him. He must grid up his soul to the vigor and tension necessary for meeting the ills of life head on. But precisely why?

Montainge seems to sense that this is the weakest point in his argument. Although he says that lack of preparation costs us too much in panic and torment at death, his explanation of the frequent bravery of simple people is not convincing, and he seems to know it; for he offers it tentatively and never repeats it. He knows that common people, whole nations, even cowards, can often perform the bravest actions even without study. He does not insist on the strictest possible regime of preparation, as do those who seek our privation. He says that we may use the body to help us if the soul is not strong enough alone; that all honourable assistance against the ills of life is not only permissible but even laudable.

To Montainge at this stage of his development, however preparation for trouble seems not only the way to freedom from fear but also, and above the vulgar and, indeed, the thing that distinguishes the truly superior man.

Montainge now fully shares the typical humanist attitude toward man’s lot, which has been well defined as “an aristocratic optimum for the Sage, a pessimism as far was the Vulgar were concerned.” The man he admires is the learned sage whom he calls “the man of understanding.” It is he who can fight the fear to which the vulgar are prone; who has lost nothing so long as he himself; in whole head Montainge cannot imagine lodging the brutish nonchalance of not thinking about death. “I cannot believe,” Montainge writes, “that meanness of understanding can do more than vigor; or that the effect of reason cannot match the effects of habit.” If reason sometimes fails to prepare us as well as ignorance, we are probably not using it properly. This is what he suggests when he tells for the first time a story he was to repeat in a later essay-how the philosopher Pyrrho encouraged his frightened fellow passengers in a terrible storm at sea by pointing to a tranquil pig that was literally in the same boat. “The intelligence,” Montainge asks, “that has been given us for our greatest good, shall we use it for our ruin, combating the plan of nature.

Actually we should be grateful that pain exists, since it gives us our main chance for distinction. Man is much alike; but we have it in us to confine pain by endurance and to keep the soul if not the body on an even keel. If there were no pain, what credit would there be for valor, magnanimity, and resoluteness? If we do not have it to bear with triumphant calm, “how shall we acquire the advantage that we wish to have over the common heard?”

As a matter of fact, consistency as well as bravery sets the wise man apart from the vulgaire. Only the sage really exists, for only he is constant; the rest of mankind is in such a state of flux that it can hardly be said to exist at all.

Thus Montainge’s problem in the early Essays is not merely the human one of seeking happiness in liberation from fear but that of the humanist, who must rise above the common herd by his readiness of meet pain and death like a sage. Much as he admires Cato, his solution is not merely the stoic one, since all concur in it. It is the humanist’s solution that seeks guidance in books, in the ancient sages, in self-mastery, in the power of the soul and of rational philosophy, to arm us against the ills of life. Montainge cannot believe that reason and understanding, properly used, are not the best weapons of defense. The way he hopes to break his siege by apprehension is the humanist’s way.

features of markets and profit maximization in perfect competition

Firms do not operate in a vacuum, they interact with their customers and with other firms. These interactions take place in markets and economics has developed models of markets that predict how firms will behave in certain situations. The three major markets are 1. Perfect competition, 2. Perfect monopoly, and 3. Monopolistic competition.

Perfect competition is the most intense form of market interaction and though it may be intense, it is not as rare as many would have us believe. Perfect competition is characterized by the following:

1.         There are many firms selling a homogenous product.
2.         There are many buyers.
3.         There are no barriers to entering or existing the industry.
4.         Firms in the industry have no advantage over new entrants.
5.         There are no transaction costs.
6.         There are no externalities.
7.         Firms and buyers in the industry have complete information.

Given the assumptions of perfect competition, it is unlikely that a firm can unilaterally influence the market price of a good will be. Hence, firms are called price takers. This is because there is nothing that the firm can do unilaterally to raise or lower the price of the good it produces.

Perfection competition, satisfying all five requirements, does not happen that often, but many industries can satisfy three or four of the assumptions, and the industry approaches perfect competition. Hence the model’s results are still valid and can lend insight to what happens in reality.

What is an example of a price taker? Major applications of this occur in agriculture. If you grow soybeans and you grow 50 acres of beans, your beans are no better than the thousands of other acres of soybeans and there is nothing which you can do to command a higher price for your beans. You are a price taker.
From the fact that a firm is a price taker, we can look at the individual firm’s demand curve,
The firm faces a perfectly elastic demand curve (Recall that perfect elasticity implies that a percentage change in price will lead to an infinite percentage change in quantity demanded). If the firm harvests 60 acres of soybeans instead of 50 acres, it can sell the extra 10 acres at the same price, and it can do this forever at the prevailing market price. (Reality may not support this proposition, but recall that economic models are not supposed to exactly represent reality, but should approximate reality. Therefore this assumption of the model may not directly apply to reality).

The firm is a price taker and has to compare with other firms by mimicking what they do and trying to get ahead at the same time. Therefore, the competitive firm has to make some decisions if it continues to stay in the industry. A perfectly competitive firm has to make the following decisions:

1.         Whether to stay in the industry or leave it.
2.         Whether to produce or to temporarily shut down.
3.         How much to produce.

Assume that the firm wishes to stay in the industry and it is going to produce. We know that the firm wants to maximize profits, but how is it going to do that?
We know that for the firm:


How price and output is determined under oligopoly


In oligopolistic industry, there are only a few big firms which control the supply of a commodity and each firm produces a significant portion of the market. They are, therefore, mutually interdependent. In other words, we say the behaviour of the firm directly affects and is affected by the action of the rival firms. The firms under oligopoly are motivated by two opposing forces, one force moves them to co-operate with one another so that the profit of each firm are maximized. The other force takes the away from the joint profit maximizing price and profit.

Under oligopoly the pricing theory is fundamentally the same with the difference that the larger the number of firms, the greater will be the differences in the marginal costs and more remote will be the possibility of collusion or agreement, whether taxeit or explicit. When they all deal in a standardized product and each is producing a considerable portion of total output, the price and output policy of each is likely to affect the other apprcialy but none can foretell precisely how. The price which will be fixed in oligopoly without product differentiation is thus inderminate.

In case there is a product differentiation monopoly agreement are even less likely. Since the products are not similar, any producer in oligopoly can raise or lower his price without any fear of losing customers or of immediate reactions from his rivals. Cut throat competition is unlikely. However keen rivalry among them may create conditions of monopolistic competition. The price in the long run may settle at a level between the monopoly price and that under cut throat competition.

It is often noticed that price under oligopoly is stable. It is neither much responsive to changes in demand nor to the changes in the supply. For instance if demand increases, no firm will venture to raise the price for fear that other firms may not raise the price and it may lose the market. Nor will it lower price for the fear that the other firms may also lower their price and deprive it of any initial advantage.

Similarly, changes in costs too, do not much affect price and output under oligopoly. For instance, if wages have gone down, each firm may like to reduce the price, but it is not sure if others too will not lower theirs. In competitive industry action of no single firm can affect the conditions in the industry, for the number of firms is very large. But under oligopoly the number of firms is very small and step taken by anyone firm is likely to produce some reaction on the others. As Tarshis remarks “Thus it is quite possible for demand and cost to change frequently and yet to produce no changes, or at any rate very few changes in price. Thus existence of oligopoly accounts for some of the price inflexibility that characterises our economy.

The oligopolists avoid experimenting with price changes. He knows that if he raises the price, he will lose his customers and if he lowers it, he will offend his rivals. He has a clientele of his own when there is product differentiation. Why shout he experiment? He is therefore content to leave price and output as they are.

What is Oligopoly? Explain the causes of Oligopoly


Oligopoly is the market organization in which there are a few or small number of firms in an industry and they produce the major share of the market. The word ‘a few’ or small number is vague. The economists therefore refer to oligopoly as that market situation in which the number of firms is small but each firm in the industry takes into consideration the reaction of the rival firms in the formulation of price policy. The number of firms in the industry thus may be only two or more than two say 5, 10, 20. The basic condition for the existence of oligopoly is that a firm in the ‘group product’ formulate its price policies with an eye to their effects on its rivals. 

There is thus a great deal of interdependence between or among the small number of firms. The oligopolistic industries are classified in a number of ways. If there are only two giant firms in an industry and they produce identical products. It is called perfect on pure duopoly. In case the goods produced by the two firms are differentiated, the duopoly is said to be imperfect or impure. When the number of firms dominating the product market is so small (more than two) that each firm takes into consideration the reactions of the rivals firms in formulating its own policy, the industry is said to be oligopolstic. The oligopoly like duopoly can also be pure or improve. If firms sell identical products like, cement, steel etc. the oligopoly is said to be pure. But if the products of the firms are not standardized and so are not perfect substitutes of one another, the oligopoly is called impure or differentiated.

Cause of Oligopoly
The main reasons which give rise to oligopoly are as follows:

1.         Economies of Scale: If the productive capacity of few firms is large and are able to capture a greater percentage of the total available demand for the product in the market, there will then be a small number of firms in an industry. The firms in the industry with heavy investment using improved technology and reaping economies of scale in production, sales promotion etc. will complete and stay in the market. The firms using outdated machinery and old techniques of production will not be able to compete with the low units costs producing firm and eventually wipe out from the industry. Oligopoly is, thus promoted due to the economies of scale.

2.         Barriers to entry: In many oligopolies, the new firms cannot enter the industry as the big firms have ownership of patents or control over the essential raw material used in the production of an output. The heavy expenditure on the advertising by the oligopolistic industries may also be a financial barrier for the new firms to enter the industry.

3.         Merger: If the new firms in the industry smell the danger of entry of new firms, they then immediately merge and formulate a joint policy in the pricing and production of the products. The joint action of a few big firms discourages the entry of new firms into the industry.

4.         Mutual Interdependence: As the number of firms is small in an oligopolistic industry, therefore they keep a strict watch of the price charged by rival firms in the industry. The firm generally avoid price war and try to create conditions of mutual interdependence.

Problem of Pain & Death in the Montainge’s study


Montainge’s early view of life was a rather Epicurean pessimism. “The wretchedness of our condition,” he was to write, “makes us have less to desire than to fear...That is why the sect of philosophy that set the greatest value on voluptuousness and raised it to its highest price still ranked it with mere freedom from pain. To have no ill is to have the happiest state of well being that man can hope for.”

Though he said that he had thus far lived reasonably happily, except for the loss of his friend, this was a great exception. Moreover, his other bereavements were to contribute their share to his pessimism. Fifteen years later the mere expressions that reminded him of his grief could still revive it: “My poor master! Or, My great friend! Alas, my dear father! Or, My good daughter!” in his gloomy apprehension, he looked for security in preparation, like the healthy young men he had seen carrying pills around to take in case of a cold. As the surest way to the negative contentment that seemed to him the best he could hope for, he sought not merely local retirement but withdrawal from all close human contacts.

We should have wife, children, goods, and above all health, if we can; but not bind ourselves to them so strongly that our happiness depends on them. We must reserve a back shop all our own, entirely free, in which to establish our real liberty and our principle retreat and solitude…where to talk and laugh as if without wife, without children, and without possessions, without retinue and without servants, so that, when the time comes to lose them, it may be nothing new to us to do without them……

We have lived enough for others; let us live at least this remaining bit of life for ourselves…it is no small matter to arrange our retirement securely…Since God gives us leisure to make arrangements for moving out…let us pack our bags; let us take an early leave of the company…We must untie these bonds that are so powerful, and henceforth love this and that, but be wedded only to ourselves. That is to say, let the other things be ours, but not joined and glued to us so strongly that they cannot be detached without tearing off our skin and some part of our body as well. The greatest thing in the world is to know how to belong to oneself.

In the essay just quoted, “Of Solitude” (I:39), four principal menaces are listed, Death, Poverty, Contempt and Disease. In another early essay (I:14) Montainge mentions only three: Death, Poverty, and Pain. Contempt did not disturb him seriously for very long, for he soon learned to know himself better than anyone else could know him and to rely on his laws and his court to judge himself. Poverty worried him somewhat for a while, but he knew that what we fear in it is pain. Pain and death are the great enemies, each with its claim to the first rank-death because it alone is inevitable, pain because it is what we fear even in death. Pain is more surely an evil, since death may be good fortune is painless; death is an evil more sure. Montainge had seen both at close range. Death had been all around, and he thought and spoke of it most of all.

His thoughts on the subject are those of La Boetie. All ideas he exchanged with his dying friend recur: that death is the test of our lives and our studies, the aim of philosophy and the proof that we have learned its lesson; that our own death should be an example that will encourage others to rise bravely above such accidents. Montainge is not so much afraid of death-or-pain as apprehensive about how well he will be able to endure them.

The early essays are full of the problem. One of them (I:19) takes its title from Solon’s famous pronouncement, “That Our Happiness Must not be Judged until after Our Death.” Solon was right, says Montainge, since only in death can we tell what was mask and what was true philosophy in a man’s life.
Apprendre is never closer to apprehend than in Montainge’s central chapter on death, “To Philosophize Is to Learn to Die” (I:20). Although generally stoical in tone, this is the mosaic of an electric humanist who draws on Pliny. Plutarch, and especially Lucretius, as well as on Cicero and Seneca. All sects agree, he says that the main function of philosophy and reason is to teach us how to die. Death is universal, as pain and poverty are not. Ignorance is of no use, for it makes us suffer more when the time comes. We must practice death, get used to it, think about it constantly. The premeditation of death is premeditation of liberty. Leave life, she tells us, as you entered is simply and unafraid; your death is a part of the order of things, an order you should not even whish to change.

With pain it is much the same for Montainge. The great question here is the degree of truth in his chapter life. “That the Taste of Good and Evil Depends in Large Part on the Opinion. We Have of Them”. It would be fine indeed if this were true, he says; unfortunately it does not seem to be. For pain is the real stuffy, whose essence we truly and certainly know; our senses are the judges. It is what we fear in poverty and in death.

Montaigne as The Apprehensive Humanist


The religious wars, which had broken out a year and a half before La Boetie’s death, were to involve Montaigne deeply and to form the somber background of the last half of his life. There were intervals of comparative peace, some of them rather long. But they were never better than armed truces, for no settlement could satisfy both sides, and during most of them sporadic violence continued in one part of France or another. The Protestants were never comparable in numbers to the Catholics; but these were sharply divided, with the government generally holding to a policy at first of tolerance, then of moderation, while the extremists opposed all concessions. 

After three was lasting each a year or two, the Reformists reached their highest peak of influence when their leader Coligny came to court in 1570 and gained greater favour with King Charles IX. But the Catholics grew alarmed as Coligny pressed for armed intervention in the Protestant Netherlands against Catholic Spain. When thousands of Protestants flocked into Paris for the marriage of Henry of Navarre, tension rose. When a hired assassin wounded Coligny, it became explosive. Threats flew back and forth, and the king was finally persuaded by his mother, his brother, and others to order he terrible Massacre of St. Bartholomew’s Day, so which Coligny and thousands of other Protestants were killed. Navarrewas forced to adjure his Protestantism and remain at court, almost a prisoner, until his party regained its strength.

In these first ten years of war, and later too, southwest Francewas a center of trouble. Bearn and parts of Gascony and Guyenne were deeply Protestant, and nearly everywhere opinion was divided. In the region around the court of Navarre at Nerac there were always Protestant soldiers, and often armies. Catholic Bordeaux, sixty or seventy miles to the northwest, was in a state of almost constant alarm. Most members of the Parlement favoured a sterner policy than the government usually did; those who did not were often in host water with their colleagues. In one period of a year and a half (March, 1569-August, 1570), the court condemned over 1,200 people to death-in absentia, to be sure. Again and again it assigned its members to actual police duties for the preservation of law and order.

Montaigne had taken from the first the position of determined loyalism that he never changed. We have noted already his anger at the more compromising Lagebaston soon after La Boetie’s death and his willing oath of fidelity in Paris the year before. In October of that same year (1562) he was with the king’s army at the siege of Protestant Rouen; it was there that he met his Brazilian cannibal. And in December 1567, he wrote from his chateau a letter to his friend Belot to be read in Parlement, warning them of the passage of Protestant troops. All his actions suggest that, Like La Boetie, he regarded the Reformists as primarily rebels against their country and their king.

Meanwhile, after a diversionary sowing of wild oats, Montaigne married, settled down, inherited his father’s estate, translated a long theological treaties, requested and was refused more meaningful employment in the Parlement, resigned his position there, published La Boetie’s works, retired to his manor, and started to write his Essays.

He married Francoise de la Chssaigne, daughter of a conservative president of the Parlement (September 25, 1565), on his father’s urging and without enthusiasms, as a social obligation. He would have avoided marrying. Wisdom herself, he says, if she had wanted him. Domestic economy was not his dish, nor building, which his father had enjoyed. What he waned of his home was freedom and peace, and apparently he did not always get them. For all their children, the marriage lacked intimacy and warmth, and Montagine’s remarks about it are generally caustic. It has even been argued plausibly that his wife was unfaithful to him, and with his brother at that. With the possible exception of the early years, the marriage seems to have gone best when each partner had the most privacy.

Montaigne’s translation is interesting in many ways. In 1546 or earlier his father had a visit from Pierre Bunel, one of his admired humanists, who left with him, as an antidote for the Lutheranism that he saw spreading in France, the Latin “Book of Creatures, or Natural Theology” of the fifteenth-century Spaniard Raymond Sebond. Some time before the death of Adrianus Turnebus in 1565 Montainge himself had shown an interest in the book by asking him about it. Though Pierre de Montainge knew Latin, and though there was already a French translation and also an adaptation, he asked his son to translate it, which he did. The book appeared in 1569; the dedication to Montainge’s father is dated from Paris, June 18, 1568-the day his father died.
The thousand pages of the “Natural Theology” are an elaborate demonstration of the existence and nature of God by the analogies observable in his creation. From man’s superiority to the lower levels of creatures-animal, vegetable, inanimate-God’s superiority is elucidated. The book opens with a preface, or prologue, claiming that it is virtually infallible and more useful than the Scriptures. In 1558 or 1559 the book was put on the Index of Prohibited Books; the body of the work was removed from the Index in 1564, but the Prologue was retained.

Montainge showed great skill in his first literary labour. The translation is smoother and gayer than the original. As he says he has docked it out a bit, a la Francoise. But he has fully understood his author and rendered his meaning faithfully—at least throughout the now innocent body of the book.
Not so in the peccant Prologue. Montainge cuts all Sebond’s extravagant claims down to size. “Necessary becomes “useful’; “infallibly” disappears. The book no longer claims to teach “all the truth necessary to man” (about God and man) but “the truth, so far as this is possible for natural reason”: not the knowledge “necessary to man” but the knowledge “necessary to man before all others.” This superb Latinist and faithful translator has deliberately mistranslated in at least twenty places, always to attenuate the presumption of the author’s claims.

Many explanations of this fact are possible. Almost certainly Montainge knew that the Prologue was on the Index. Clearly he wanted his translation to be wholly orthodox-as indeed it was; it was never troubled by censure. There may even be some influence of his father. At all events, Montainge clearly appears at this time to have been thinking and conforming Catholic, willing to undertake a sizable literary chore if his father thought it might help the good cause or work for conciliation between the warring sects. And already he was highly skeptical of the power of unaided human reason in matters divine. The germ of the “Apology for Raymond Sebond” exists already in Montainge’s version of the Prologue to the “Natural Theology.”

These were ten hard years for him. Besides the public bloodshed and alarm, which was terrible in Guyenne, he had private grounds for grief and apprehension. In 1561, without warning, his father had fallen grievously ill with the kidney stone, which after seven painful years was to kill him. Montainge’s own fear of the stone, which grew intense until experience cured it, probably goes back to the early days of his father’s suffering. Two years later his beloved friend had been morally stricken in his thirty-third year. Five years afterward, while Montainge was away, his father died in great pain. Now that Montainge for the first time had money of his own, even this began to worry him. Soon after his father, a brother, Arnaud de Saint-Martin, a brave young captain of twenty-three, died as a result of being hit over the ear by a tennis ball. In the same period Montainge came close to death in the most unlikely way-an accidental collision on horseback; this, too was a reminder. Another two years, and Thoinette was born, his long-awaited first child, to live only two months. A second child, born in next year survived; but in 1573 a third child died an infant, and later still another and another and another. “When these examples, so frequent and so ordinary, pass before our eyes,” Montainge writes of his brother’s death, “how is it possible that one can get rid of the thought of death, and that at every instant it should not seen to us that she holds us by the throat?”

What is meant by market? Distinguish between perfect and imperfect market


In ordinary language, a market means a place where things are bought and sold. But in Economics a different meaning has been given to the term. Professor Chapman says “Economically interpreted the term ‘market’ refers not to a place but to a commodity or commodities and buyers and sellers of the same who are in direct competition with one another.” Thus we speak of cotton market, share market etc. There is a market for every commodity that has buyers and sellers, even though there is no specified place where they meet. All that is required to constitute a market therefore is a commodity that can be bought and sold some are willing to buy and others are willing to sell. 

The buyers and the sellers can communicate with one another by words of mouth, by letter, telephone, cable, internet or by wireless, the method or place does not matter. The definition of the market points out two main features of an economic market. Firstly there must be a free competition among buyers and sellers. Secondly, as a result of this competition there must be competitive price. The more organized a market is, the greater is the tendency to the same price for the same thing at the same time through out the market, even if it is worldwide.

Perfect and Imperfect Market
On the basis of competition between the sellers and buyers of a commodity, market may be classified into two categories, namely Perfect Market and Imperfect Market.

Perfect market implies the following conditions:
(a)        A large number of sellers and buyers
(b)        Buyers know the prices charged by the different sellers of the commodity
(c)        Only one price prevails in the market due to the competition between buyers and sellers.

But these conditions rarely exist in reality. The number of sellers or of buyers may be small and as a result the competition between them may not be free or perfect. When there are a small number of sellers, they can influence the price by selling more or less of the commodity. The buyers may also be smaller in number and they can also influence the purchase price by purchasing more or less of the thing. Different sellers may sell at different prices because each seller controls a large part of the total supply. The same is the true of the big purchasers. The buyers may be ignorant of the prices charged by the sellers or buyers may have preference for particular sellers. As a result the sellers can sell at different price than others. These conditions make market imperfect.

Role of Land in the process of production

The term Land has been given a special meaning in Economics. It does not mean soil as in ordinary speech but is used in much wider sense. It also includes all natural resources which are free gift of nature.
In Marshall’s words, “land means the materials and the forces which nature gives freely for man’s aid in land and water in air and light and heat.”

Importance of Land
Land in economics is a term which is often used in a wider sense. It does not mean soil as in ordinary speech. Land stands for all natural resources which yield income or which have exchange value. It represents those natural resources which are useful and scarce actually or potentially. Land is absolutely indispensable for human being and nothing can be produced without land. Land is an important factor of production and survival of human being is directly linked with land.

Fertility and productivity of land is essential for economic development. The developed countries have reached the climate of economic development and increased their production due to rich and abundant natural resources, on the other hand under developed countries will have explored their natural resources in order to achieve economic welfare. Marshall says in favour of importance of land by saying that land provides space for the human activities and struggles. Land is the first and the foremost factor of production without which it is difficult to start a business. For example if we want to establish cotton industry, we need raw material which will come from land. In this way in all economic activities the role of land is maximum and the question of land is foremost goal of all economic activities to start. Moreover the following points further elaborate its importance.

(i)         Land provides all food to human beings.
(ii)        It provides space for all human activities like banking, trade, industry etc.
(iii)       Fertile and productive lands pave way for economic development of a country.
(iv)       Agriculture development of a country is possible only when all lands are fertile and suitable for all crops.
(v)        Agriculture raw material plays a vital role in industrial development which comes from nature i.e. land.
(vi)       Land provides way to transfer commodity from one place to another which leads to economic development for a country.

Entrepreneur is the Essential Factor of Production, Critically examine this statement and also explain the role of the Entrepreneur.


In earlier times, wants were few. Each man did his own efforts, produced things he was in need of. He had his own land, his own labour and capital and thus produced the essential things. But now a days production is highly organized and complex. The invention of machines has revolutionarised the system of production. The modern process of production is very long. It is carried on with the help of hired labourers. The work for producing even can insignificant thing is now divided into number of operations. This results in the division of labour. Each man or each group of men is engaged in performing only one particular operation. This complexity of modern production has brought the question of organization or entrepreneurship into prominence.

The organizer or entrepreneur may not be a risk taker. He is the captain of industry. The armies of industry can no more be raised, equipped, held together, moved and engaged without their commanders or entrepreneurs. He has to select the suitable site for his factory. He has to secure machineries and tools required for production. He has to purchase his raw materials from and sell the finished products at the best market. In short and entrepreneur is the person who has to collect, adjust and Marshall the forces of production in such a manner as to derive the maximum profit from the industry. The role that the entrepreneur plays consists in co-ordinating and correlating the other factors of production.

He starts the work, organizes and supervises it. He undertakes to remunerate all the factors of production, to pay rent to the landlord, interest on the borrowed capital and wages to labour and pay them in advance of the sale of goods. The residue if any is his. Nothing may be left after he has made the necessary payments. In that case his venture will have been miscarried. But it is also possible that he may be lucky to make a handsome profit. Whatever may be the outcome, he must be prepared to accept it. He thus takes the final responsibility of the business. If he has anticipated the consumer’s wishes arigia and interpreted them correctly, he is amply rewarded. Organizing or risk taking or uncertainty bearing as it is sometime called are the two chief functions of modern entrepreneur. 

The entrepreneur is the inventor. Innovation by the entrepreneur implies a variety of things. It may mean the introduction of a new method of production or an improvement in the old methods. It may consist of the introduction of a new commodity like the transistor radio sets or a new make of old product e.g. yet another brand of toothpaste. Innovation may refer to the discovery of new materials, fresh sources of old materials, or new uses for materials or final goods. It also includes the opening of new markets. Innovation may also take the form of new techniques in the way of administration, finance, marketing or human relations inside the business and public relations outside i.e. with suppliers of materials and consumers of products. It is involved finally, when new forms of business organizations are instituted, such as chain stores, the merger of several establishments or a monopolistic combination among producers.

It will be easily understood that uncertainty is inherent in the making of the decisions like those enumerated above and also in any innovations that may be adopted. The all embracing function that the entrepreneur performs is therefore that of uncertainty bearing.

What is Capital Accumulation? Discuss the factors that influence Capital accumulation


Capital formation or capital accumulation means the increase the stock of real in a country. In other words capital formation involves making of more capital goods, such machines, tools, factories, transport, equipment, materials, electricity etc, which are used for further production of goods. For making addition to the stock of capital savings investments and technical progress are essential. Capital accumulation is the very core economic development. It may be a predominantly private enterprise system like the American or a socialist economy like China and Cuba. Economic development cannot take place with technical progress such as construction of irrigation works, the production of agricultural tools and equipments and reclamation, building of dams, bridges and factories with machines installed in them, roads, railways and airports, ships and harbours, all the produced means of further production associated with high level productivity. In the view of many economists capital formation occupies the central and strategic position in the process of economic development.

Factors influencing Capital Formation:
Capital formation is not an automatic process. The rate of capital formation is different in different countries. This shows that capital formation is conditioned by certain factors. The following are chief factors that govern capital formation in a country.

(a)        Saving Creation: Savings are done by individuals or households. They do savings by not spending all their income on consumer goods. When individual or households save they release resources from the production of goods. Workers natural resources, materials etc thus released are made available for the production of capital goods.

A high rate of savings is possible if people are prepared to put forth effort to maximise output even with the resources available and are willing to keep down their expenditure with in reasonable limits. In other words level of savings in a country depends upon the power to save and the will to save. The power to save or saving capacity of an economy mainly depends upon the average level of income and distribution of national income. The greater the level of income greater will be the amount of savings. Another source of savings is government. The government savings constitute the money collected as taxes and profits made by state under takings i.e. government enterprises. Foreign trade constitutes third source of savings. Foreign trade is easily amenable to State control for revenue and other purposes.

(b)        Mobilizing of Savings: Next step in process of capital formation is that the savings of household must be mobilized and transferred to businessmen or enterprise that requires them for investment. This stage depends on the efficiency of machinery for the collection of savings viz, the capital market, banks, insurance companies etc.

(c)        Channelising Savings into investment: For savings to result in capital formation, they must be invested. In order that investment of savings should take place, there must be a good number of honest and dynamic entrepreneurs in a country who are able to take risks and bear uncertainties of production. Given that a country has got enough good and venturesome entrepreneurs, investment will be made by them only if there is sufficient inducement to invest. Inducement to invest depends on marginal efficiency of capital i.e. progressive rate of profit on the one hand and rate of interest on the other hand.

(d)        Foreign Capital: Capital formation in a country can also take place with the help of foreign capital or foreign savings. Foreign capital can take the following form.

(i) Direct private investment by foreigners.
(ii) Loans or grants by foreign governments and
(iii) Loans by international agencies like World Bank.

essays “On the Educating of Children” about Montaigne’s Hedonism


Montaigne as a boy stands well revealed in the essay “On the Education of Children”. Independent and tenacious but slow to move, he was in danger of doing not wrong, but nothing at all-a reproach he was to hear all his life. Secure in the intelligent love of the father he loved dearly in return, he spent a boyhood generally happy but marred by his first seven years of formal education. These gave him his first real taste of folly and injustice: and from what he tells us of his mind at the time, he may well even then have judged much as he did later the inanity and severity that could come of knowledge and authority misapplied. No matter what his father did, “It was still school.”

Montaigne’s Catholicism must have been the result of a real decision. When this came, we do not know, nor even just when his brother and sister-or possibly two sisters-were converted to Protestantism. But his father was presumably concerned about the matter by the time Montaigne was thirteen, for it was no later than that his friend Bunel gave him Sebond’s “Book of Creatures, or Natural Theology” as a support for Catholics against heresy. Many young nobles in the fifteen-forties and fifties, for love of adventure and many other reasons, had at least a mild flirtation with the new could. Montaigne himself was somewhat drawn to it in its days of adversity and at one time tended to scout certain points of Catholic doctrine. His independence of mind takes one wonder what were his exact reasons for remaining in the fold. The Protestants had not yet done the harm that he was to emphasize later. Earlier it may have been intellectual conviction, premonition of trouble to come, scepticism about new ideas, allegiance to the faith of his father, or some combination of these and perhaps still other motives. We can only conjecture which one were dominant. But in a family so divided, Montaigne’s decision was an important one.

From thirteen to twenty-one, from schoolboy to fledgling magistrate, Montaigne is almost lost from sight. We have a better picture, fragmentary but suggestive, of his sixteen years in the courts of Perigueux and Bordeaux; that their due precedence was long denied and often challenged, even when at last acknowledged; and that on one such occasion Montaigne spoke out for the first time, to point out that their precedence had already been recognized in fact. We sense from the Essay how much he learned in the Parlement: the board experience of human behaviour, especially of sham and cussedness, the “capacity to sift the truth,” weighing evidence and probing into motivation, the conviction that however undemonstrable the standard, things were either right or wrong, and that thoughtful investigation and understanding must lead ultimately to right judgment.

More conspicuous than the profit was the vexation. It was bad enough to be confined mainly to reporting and not judging; it was worse that even this had to be based not on equity but on the interpretation of a cumbersome and often unfair body of law. The Essays are full of Montaigne” direct comments.
Consider the form of this justice that governs us: it is a true testimony of human imbecility, so full it is of contradiction and error…Poor devils are sacrificed to the forms of justice…How many condemnations I have seen which were more criminal than the crime…

Now laws remain in credit not because they are just, but because they are laws…They are often made by fools, more often by people who, in their hatred of equality, are wanting equity; but always be men, vain and irresolute authors.

There is nothing so grossly and widely and ordinarily defective as the laws. Whoever obeys them because they are just does not obey them for just the right reason.

Here is at least one source of Montaigne’s constant vexation with ceremony, of his awareness of human injustice, and most important, of his scepticism. It did not take Sextus Empiricus to teach him the vanity of the human intellect; he had learned it for sixteen hard years.

The outstanding characteristic of the young Montaigne as seen by his older self is independence. Brought up to freedom and adaptability, he “loves to give his freedom elbow room in all directions. He hates to feel indebted, or even to ask favours, because of “a little natural pride, inability to take refusal, contraction of my desires and designs, inability in all sorts of affairs, and my most favourite qualities-idleness freedom.” Almost equally he hates to involve himself unnecessary or excessively. Few things grip him, and he has cultivated this inborn trait: temperamentally incapable of solicitude, he would lend his blood as readily as his care. By nature and by reason he is frank. He would rather be importunate and indiscreet than a dissimulating flatterer. Even in his amours he is wholly honest, indeed blunt, in his approaches. Impatient of any constraint, he learns better from contrast than example, from good fortune than bad. Even the constraint of habit he has rained himself to avoid. Never that he can remember has he taken advice-nor often given it. He sees the illusions of age as well as those of youth. Impatient as a youngster when people competing with him would not try their hardest, he has always wanted to be treated as a man and felt that he should be. Too much is made of mere seniority he thinks in us to show, we have shown it at twenty.

Not all his traits of temperament are easy to assort. As is natural, he seems somewhat less phlegmatic early than late. He takes little trouble, he tells us, to correct his natural inclinations. Rather gay than melancholy, his native good spirits is tinged with seriousness but not sadness. He is lively; his legs are full of quicksilver; it is a good sermon that can keep him still and attentive. He is impetuous: even in his later years he eats greedily and sometimes bites his fingers in the process once, when challenged in the Parlement, he replies with what the official report describes as “all the vivacity of his character.” Though not an ambitions man, he is by no means free from ambitions as indeed he is never to be. Even his study as a youth, he says, is for ostentation, as are certain purchases of books. He is neither truly gregarious nor a pure solitary: his nature is outgoing and communicative. Altogether, his best quality of temperament is a full firm vigour.

Not a big man but solid, lively and full of health, a touch of pride showing in certain gestures, he is careless with money, gay and debonair, imaginative, a lover of poetry, of adornment, of excitement and variety. In short, a typical well-adjusted young man setting out to conquer the world and enjoy it. The splendour of the court draws him again and again in his twenties. Judging by the volume of his confidences on his youth, he is drawn most of all to the pursuit of women.

His attitude toward them is not completely simple. Like so many of the ancients and of his own contemporaries, he generally regards them as potentially decorative lightweights, incapable either of good sense or of mental or spiritual elevation. True friendship is beyond their reach; their love is nothing but sexual gratification. Constitutionally enslaved either to passion or to prudery, they have been denied by nature the freedom that allows some men to attain the dignity of fully human living. The essay “Of Three Good Women” (II:35), which is pointedly followed by “Of the Most Excellent Men,” and the goodness of the three heroines consists simply in great devotion to their husbands.

Yet Montaigne likes them and wants to be liked by them. The several essays that he dedicates to women; their society is one of the three associations that he enjoys. And his most licentious essay, “on Some Verses of Virgil,” written, he says, so that women will take his book from their salons into their boudoirs, concludes that men have been unfair to them and kept them from their rightful equality. His usually attitude in the Essays, which is mainly that of his fifties, is the affectionate condescension of maturity toward the chard and folly of adolescence.

In his youth his dominant feeling apparently is frank desire. He says he cannot remember when he was a virgin: can imagine chastity but has never practiced it. He has suffered the flame and pangs of love. Though he has avoided paid amours, he has not escaped a bout or two of venereal disease. No professional ladies’ man, always perfectly frank in his affairs, he will not stoop to deceit. Sexual intercourse he greatly enjoys as a healthy, natural and therefore legitimate function. If he seems to treat it rather like eating, at least he finds it much more exciting.

Altogether, it is a lively young magistrate that the Essays fondly evoke. Yet his liveliness is not giddy. Even as later he fights the illusions of age, so now he fights those of youth. While his passions disport, his judgment remains as uncommitted observer. Looking back later on his youthful amours, he finds that he had himself pretty well in hand and would do not better now if exposed to such strong temptation. He is prudent in concealment when necessary. By an effort he can oppose his passion with diversion and reason: he can recognize the face of vice under the mask of pleasure. Independent above all, he vigorously and successfully fights any bondage to love. “In his business, I did not wholly let myself go; I enjoyed it, but I did not forget myself; I kept in its entirely that bit of sense and discretion that nature gave me, to the advantage of may partners and to mine: a bit of emotion, but no folly.”

Besides judgment and self-control, another serious trait marks the young Montaigne. Whatever he did, he says, death was never far from his thoughts. We can only guess at the cause of this near obsession. Certainly it is not uncommon in youth, to whose long, long thoughts the limits as well as the possibilities of life often seem closer and more real than they do later. Montaigne does not let death worry him, but he feels its nearness constantly:

There is nothing with which I have at all ages more occupied my mind than with images of death. Even in the most licentious season of my age…amid ladies and games, someone would think me involved in digesting some jealousy by myself, or the uncertainty of some hope, while I was thinking about I don’t remember whom, who had been overtaken a few days before by a hot fever and by death, on leaving a similar feast, his head full of idleness, love, and a happy time, like myself; and that the same chance was hanging from my ear….I did not wrinkly my forehead any more over that thought than any other…Otherwise for my part I would have been in continual fear and frenzy; for never did a man so distrust his life, never did a man set less faith in his duration.

Mila Kunis Enjoy in Talks Show and Dating


Mila Kunis generally is one of the most sought-after actresses today. However when you are looking for her personal lifestyle, she'll be the initial to confess it is difficult to discover enjoy along with her flutter schedule. Inside the September concern involving Sophisticated style, Kunis, 31, unveils that will she's a big supporter regarding helping her close friends night out on the web, however she has in no way actually employed the web to discover a night out for very little. In addition, she desires starting a household eventually not today.

Feel as if possibly could never ever create everything with regards to personally, because that’s liked a treatments period. You just publish whatever you adore relating to your buddies, your "Ted" celebrity said with regards to establishing a web based courting profile. "If My spouse and if didn’t carry out things if accomplish, I might do Online dating instead of going out to cafes. By 50 percent just a few seconds I'd personally. Celebrate much more perception.

She may be a web based online dating pro, but Kunis does not have time for a relationship right this moment.

Mila Kunis Talks Show and Dating


I’m Alright within my personal lifestyle," your woman said, confessing she gets by no means create any online dating report regarding herself. "I’ve in no way dated. I'm able to declare this particular truthfully: I don’t know very well what it’s preferred to day.

In addition, just how should in day? I’m not in one condition long enough.

Though the lady may not have excessive experience with regards to dating, Mila Kunis can confess she really wants to have loved ones -- at some point.

This isn’t the best occasion that is can have got 1, however do desire a loved ones, the lady mentioned any time questioned when she gets stress to have a infant. I’d rather be in love this will let you infant than have a film.

Look at many photos involving Kunis down below, and don't skip Glamour's August concern, entirely on newsstands along with electronically on come July 1 10.


Nice Film Wallpaper Mila Kunis 

Mila Kunis 

After Dating Mila Kunis 

Mila Kunis With nice Makeup

Kristen Stewart with Robert Pattinson

There are in Show Kristen Stewart with Robert Pattinson 


Kristen may be injured with the infant insect! Right after going to the July 12 marriage ceremony where the girl and also Rob had been ‘glued to every one other’ and ‘making out all over the place,’ Kristen moved a pregnant woman’s abdomen and have become enamored while using concept of creating a kid together with Deprive!

What’s on its way 1st infant or relationship? Based on a new document Christian serrate provides infant around the minds, wanting to have a very mini-me using Jackson redbone before being hitched!

Robert Pattinson along with Kristen Stewart

Twilight Review
Kristen Stewart ended up being actually talking to expectant guests and also shared with her that they solo want to have a newborn with Deprive, stated an origin to People Once a week. “She think it is consequently awesome: from some part your woman caressed the actual woman’s tummy for you to notice the baby quit.

Based on the record, Kristen, 25, can be falling in love with your ex 11-year-old Breaking Birth costar Mackenzie Foy.

Kristen Stewart with Robert Pattinson  Kissing 

Your woman along with Deprive, 26, have been experienced taking part in mother and father with their Busting Dawn little girl, Rename, as well as “would talk about where did they would certainly elevate their unique kids.” Their own supply reveals, “Kristen would certainly declare, ‘Well, I’d never make this happen or perhaps that.’ It sometimes would start off as a tall tale, however you understood these were genuinely thinking about it.”

Drawing Picture
Perhaps his or her movie director Costs Condom predetermined they might do well parents right after seeing his or her conversation as Renesmee parents, Ed and also Bella swan Cullen. He explained, “It really produced something paternal out in Deprive, along with Kristen was especially protecting.”


Robsten wont be having kids shortly even though -- their particular supply says they are going to apply for a child after the final The twilight series: “They recognize their own each and every move will be examined while they’re advertising the movie. They will determine when the moment is correct.”


Bed Room Snaps Shot Of Kristen Stewart Room
First Look''s

Chris Brown Stressed before Fresh Album “Fortune” Drops



Chris ended up being allegedly tremendous stressed for ‘Fortune’ for you to introduction! Read on for additional information.

Chris Brown stood a scenario from the nervousness!

An origin close to the celebrity informs EXCLUSIVELY this individual ended up being very nervous for brand new album to go are living today, Come early July Three.

“He a bit anxious regarding it,” an origin shows. “You would like it to do well therefore, that’s just about all in his / her thoughts today.”

Fortune strikes merchants right now and we’re sure it’s going to skyrocket in apple tunes!

Political election as well as think about within under.

Rihanna is his girlfriend
Chris Brown Smile

Chris Brown Singing on Street

Chris Brown In Court Room

Chris Brown Wallpaper

Rihanna’s Content Behind Chris Brown’s Expect Show

Rihanna’s And Chris Brown’s on Concert

So sweet Rihanna delivered Chris sweet information after he or she rocked your Wager Prizes, an origin tells entirely. Keep reading for additional information!
Just because Mary j wasn’t in the Wager Honors, doesn’t imply the lady skipped Chris Brown’s amazing overall performance!

A resource lets us know solely that Rihanna, Twenty four, sent Joe, 23, any sweet wording right after his Gamble Awards performance upon Come early July A single.

Rihanna text Chris early today as well as the text message stated ‘you nailed that great job,’” an origin shows.

A source near Chris told ahead of the efficiency in which RiRi directed him or her the text wishing your ex good luck saying: “I’m thinking regarding yap; all the best tonight :).” They are thus encouraging of each other!

 Chris Brown and Rihanna

Chris Brown’s broke down and recognized right up until three or more a new. Michael. A resource lets us know, following his or her BET is victorious along with amazing overall performance.

Also obviously, he’s experiencing encouraged from the entire nice atmosphere around him or her as they tweeted “personality” which has of a painting he’s taking care of!

We all entirely adore exactly how Rihanna wished him good luck.

Romance Rihanna and Chris

Beyonce & Kim Kardashian Interfere With Jay-Z & Kanye West won’t in Dispute

For Stars Together in Show 
The actual guys are making this on the ladies to combat out and about their troubles. A resource informs specifically Kanye isn’t likely to question Jay-Z to produce items much better! Read on to determine why.

Kanye is totally swooning over Kim Kardashian, however, not enough to select your ex around his friends.

A resource tells exclusively that will Kanye, Thirty five, along with Jay-Z, 49, aren’t likely to try to push Beyonce and also Kim being close friends.

“Kim along with Beyonce aren’t tight whatsoever, however don’t consider Kanye will probably strategy Jay-Z with this nonsense. He’s about forcing funds as well as making audio as well as he’s leaving the actual temper-tantrums on the girls,” an origin informs us.

Betty joined your Wager Honors together with Kanye west about come July 1st A single as well as hung out with Beyonce along with Jay-Z all night, however it had been clear through merely watching the particular demonstrate that their interactions were somewhat awkward. Even so, a source informs us that will Kanye is very crazy about Ellie, however he or she doesn’t wish to endanger their friendship and audio through getting distracted by the woman theatre.

Make absolutely no blunder; he really loves Kim making the girl feel relaxed the complete night. These folks were behind the scenes hamming it up and also the kiss and simply stood a fun moment,” a source informs us. “Jay-Z and Kanye come in the idea to acquire the idea as well as their females will likely be okay soon enough. It’s not to imply they’re going to be bestirs, however they is going to be beneficial.

Beyonce Red Dress 
Jay-Z Official Dress

Kanye West

Kanye West Frost Look's

Beyonce On Street

Beyonce Without Makeup

Jay-Z Smoke Face

Roacking Style

Kanye West Singing Style 

Kim Kardashian Hot Boob;s

Kim Kardashian Nails