• Job designing
• Job analysis
• Human Resource planning
• Recruitment
• Selection
• Hiring
• Induction
• Training and development
• Employee movements
• Performance appraisal
• Management of payments
• Employee welfare
• Labour relations

• Financial market can be classified as follows:
  • Money market
  • Capital market

 Instruments exchanged in the Financial market 

• Treasury Bills
• Commercial Papers
• Treasury Bonds
• Rupee Loan securities
• Deposit Certificates

Payment and settlement systems

• Real Time Gross Settlement System (RTGS)
• Image Cheque  Clearing/Cheque Truncation System (CTS)
• Scriptless Securifies Settlement System (SSSS)

 

• Branding
• Packaging
• Labelling
• Pricing
• Distribution
• Promotion

The process of exchanging goods and services between a buyer and a seller is known as
trade.
— Trade takes place based on major activities of buying and selling
— What happens in trade is that the ownership of the product transfers from one party to
another
— The different types of trade can be shown by a flow chart as follows

Home trade (Domestic Trade)

1. Retail trade
2. Wholesaletrade

Foreign trade (International Trade)

1. Imports
2. Exports

— Domestic trade means trading within the boundaries of a country. — Domestic trade is twofold as follows.

• Retail trade
• — Wholesale trade

— Retail trade means selling goods and services for final consumption. Retail traders render a great service to the following parties

• To the producer
• — To the wholesale trader
• To the consumer

— The following are some services provided to the producer

• Providing information needed by the producer
• — Supporting the promotion of goods by displaying, posters, banners, cutouts and
  distributing samples etc.

— The following are some services provided to the wholesaler

• Buying different types of goods from the wholesaler and storing them.
• — Supplying important information to the wholesaler
  —

The following are some of the information provided to the consumer

• Supplying the goods demanded by the consumer in the required quantity and required
  time
• Introducing the goods to the consumer.
• — Supplying goods on credit to the consumer
• — Explaining how the goods are used.

—Many intermediaries are connected when distributing goods from the producer to

The following chart shows the distribution channels of consumer goods.

 

• Segmenting the entire market which has dissimilar features into groups of similar features is known as market segmentation.

Benefits of Market segmentation 

• Since the entire market is analysed amuch awareness regarding the market can be gained
• Ability of recognizing the appropriate and periodic market
• Segmented market can be specifically segmented further
• Ability of utilizing the limited resource available in the firm efficiently and effectively
• The firm is able to minimize the market risk
• Ability to launch marketing programs more successfully

 Factors of Market segmentation 

• Geographical factors
• Demographical factors
• Psychological factors
• Behavioral factors

Requirements  for an effective Market segmentation 

• Measurability
• Subtantiality
• Accessibility
• Differentiability
• Actionability

Targeted Market 

• The market segmentation that may be able to work for the betterment of the entity in an attractive and lucrative manner out of the recognized customers with similarities from the multicharactered customers in the entire market is known as the target market.

Expenditure on final consumer goods like food, clothes etc and services by households is explained as private consumption expenditure.

Gross investment can be classified as

• Gross domestic fixed capital formation
• Change in stocks ( Inventories)

• Government purchases are the expenditures on goods and services by the government.
• Net exports is the difference between exports and imports.
• value of gross domestic expenditure comprises private consumption, gross
investment and government purchases.
• Expenditure on gross domestic production can be calculated by adjusting net exports
to gross domestic expenditure.
• Expenditure on Gross National Production can be calculated by adjusting Net Foreign
Factor Income to Expenditure on Gross Domestic Productions

The following types of expenditure are excluded by considering only effective economic activities

• Transfer payments
• Transactions of resale of goods
• Expenditure on intermediate goods
• Expenditure on financial papers.

Structure of resources can be explained as

Total resources = Gross domestic production + goods and non factor services imports.

Utilization of resources can be explained as

Utilization resources = Private consumption + Government consumption + Gross domestic capital formation + Goods and Non factors services exports.
(Explain using related data in Sri Lanka)

Data on National accounts are essential for economic management.
• Gross Domestic production comprises three sectors agriculture, Industry and
services.
• The importance of economic structural changes with relative contribution
of economic sector to gross domestic production, can be analyzed..
• Considering the structure of gross domestic production, economic policies can be
implemented to uplift the relevant economic sectors.
• National income accounts can be used to illustrate the distribution of income among
factors of production.
• This shows the percentages of incomes distributed to labour and property
assures.
• National accounts can be used to evaluate the economic condition of a country and
international comparison.
• Per capita income is computed with the ratio between National income / production
and mid year population of the country.
National Income / production
Per-capita Income = ___________________________
Midyear population
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• Economic growth is explained as the continuous increase in real national out put.
• Economic growth can be measured with the gross National production at constant
prices .
• The following limitations can be seen when preparing the National income accounting
data.
• Transaction of non market activities
• Illegal economic activities
• Informal economic activities
• Increase in quality of production
• Non-consideration of the influence of the environment.
• Excluding the interest payments on government debt.
• Transaction of non market activities are
•Household services in a household.
•Services of self employment.
•Subsistence economic activities
• National production is under estimated as non-inclusion of the above effective
economic activities.
• Examples of illegal economic activities are
• Illegal production and sales of liquor, prostitution, bribery and corruption military
and insurgent activities.
• Through income and expenditure flows occur in all these activities, the value of
National production is underestimated because they are not included.
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• Informal economic activities are explained as the activities performed by poor
people and are not recognized by the government
• characteristics of informal economic activities areas are as follows.
• Informal documentation
• Depends on family labour.
• Failure to count for tax payments and social security contributions.
• Failure to conform to various government rules and regulations
• Production values derived from the above economic activities are not officially
reported,therefore, National accounts are under estimated.
• When calculating National accounts only quantity is considered but not increase in
quality.
• Unfavorable influence on the environment when the production process is explained as
environmental deviation.
• Because of these unfavorable influences to welfare are not included, National income
is overestimated.
• Considering these effects of environment national accounts are adjusted are called
green national accounts.

National income can be computed in income approach by adding all factor of incomein production process.
Factor incomes in production process.

 Factor incomes can be classified under five categories.

• Income of employment
• Real income
• Net interest
• Profit and entrepreneur’s income
• Self employment and professional income.

Employed income is based on three factors

• Salaries and wages
• Employers’ payments for social security contributions.
• Insurance services, health facilities, labour compensations and disaster payments to
  employees.

Rent income is based on the following

• Rent income earned from fixed property and rent from internal resources which are
  given on lease or rent.
• Rent from houses and implicit rent
• Income on intellectual property

Only net interest of the business sector is included in National income estimates

Profit and entrepreneurs’ income are based on the following sources.

• Corporate income taxes
• Dividends given to owners.
• Undivided profits

Self employed and professional income include the following.

• Sole enterprises which are not registered as companies.
• Partnerships and cooperatives .
• Farmers’
• Various professionals employed in other jobs
• Professionals (Doctors, Lawyers)
• Private incomes

Household income can be calculated as follows

Disposable personal income occurs when direct taxes are deducted from personal income.
The following schedule illustrates how foreign accounts are related to National accounts.

National income can be computed in two ways

 

 

• Gross Domestic Production is the value of final productions, produced in a geographical region in a certain year.
• The total of value added in agriculture, Industrial sector and services is Gross Domestic Production.
• The total value of output which is manufactured by the national resources , in a given period of time is Gross National Production.
• Gross National Production can be calculated by adjusting receipts and payments of foreign factor income to Gross Domestic Production.
• The difference between receipts and payments of foreign factor incomes is namednet foreign factor  income.
• Net Domestic Production is the difference between gross domestic production and capital consumption (Depreciation)
• Net National Productions is derived by deducting capital consumption from gross national production
• Exceptional characteristic of Net National Production is that it includes only the income of factors services.
• National income is calculated by adjusting net indirect taxes to net National Production.
• Value of the productions is based on payments of all factors or cost of production is explained as factor cost price.
• When net indirect taxes are adjusted to factor cost price, Gross Domestic Production at market price occurs.
• Gross National Production at market price is explained as the current price or present price of gross National production.
• Gross National Production at current price does not show the real increase of the economy.
• To understand the changes of real production the Gross Production should be adjusted for the price inflation.
• If the value of production at current prices is deflated by a price index, the value of the production at constant price is derived.
• Gross Domestic Production at constant price is termed real Gross Domestic Productions
• By comparing the Gross Domestic / National Production at the current price with Gross Domestic / National Production at constant price, implicit price index occurs.
• Implicit price index or deflator of national production can be computed as follows.

Implicit price index       =     ( G.D.P. at current price /G.D.P. at constant price) x 100