Single Entry and Double Entry Accounting

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Single entry accounting/Cash accounting. This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid. Double entry book keeping/Commercial accounting. Double entry or commercial accounting system records both aspects of transaction i.e. receipt or payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc. This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of c
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21 st CENTURY MANAGEMENT TRENDS II

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Entrepreneurship:

Practically everywhere you turn these days you’ll read or hear about entrepreneurs. If you pick up a current newspaper or general news magazine or log on to one of the Internet’s news sites, chances are you’ll find at least one story (and probably many more) about an entrepreneur or an entrepreneurial business. Entrepreneurship is a popular topic! But what exactly is it?

Entrepreneurship is the process whereby an individual or a group of individuals uses organized effort and means to pursue opportunities to create value and grow by fulfilling wants and needs through innovation and uniqueness, no matter what resources are currently controlled. It involves the discovery of opportunities and the resources to exploit them. Three important themes stick out in this definition of entrepreneurship. First is the pursuit of opportunities. Entrepreneurship is about pursuing environmental trends and changes that no one else has seen or paid attention to. For example, Jeff Bezos, founder of Amazon.com, was a successful programmer at an investment firm on Wall Street in the mid-1990s.
 
However, statistics on the explosive growth in the use of the Internet and World Wide Web (at that time, it was growing about 2,300 percent a month) kept nagging at him.He decided to quit his job and pursue what he felt were going to be enormous retailing opportunities on the Internet. And the rest, as they say, is history. Today, Amazon sells books, music, home improvement products, cameras, cars, furniture, jewelry, and numerous other items from its popular Web site.

The second important theme in entrepreneurship is innovation. Entrepreneurship involves changing, revolutionizing, transforming, and introducing new approaches–that is, new products or services or new ways of doing business.

The final important theme in entrepreneurship is growth. Entrepreneurs pursue growth. They are not content to stay small or to stay the same in size. Entrepreneurs want their business to grow and work very hard to pursue growth as they continually look for trends and continue to innovate new products and new approaches.

Entrepreneurship will continue to be important to societies around the world. For-profit and even not-for profit organizations will need to be entrepreneurial–that is, pursuing opportunities, innovations, and growth–if they want to be successful.

Managing in an E-Business World

Few years ago the Internet and World Wide Web were a novelty to most managers and organizations. Email as a form of communication was gaining in popularity, and occasionally you saw Web addresses in company advertisements. Those days are long, gone! Now, everywhere you look, organizations (small to large, all types, global and domestic, and in all industries) are becoming e-businesses. Today’s managers must manage in an e-business world! In fact, as a student, your learning may increasingly be taking place in an electronic environment. What do weknow about this e-business world?

E-business (electronic business) is a comprehensive term describing the way an organization does its work by using electronic (Internet-based) linkages with its key constituencies (employees, managers, customers, suppliers, and partners) in order to efficiently and effectively achieve its goals. It’s more than ecommerce, although e-business can include e-commerce. E-commerce (electronic commerce) is any form of business exchange or transaction in which the parties interact electronically. 

Firms such as Dell (computers), Varsity books (textbooks), and PC Flowers and Gifts (flowers and other gifts) are engaged in e-commerce because they sell products over the Internet. Although e-commerce applications will continue to grow in volume, they are only one part of an e-business.

Not every organization is or needs to be a total e-business. There are three categories of e-business involvement. The first type is what we’re going to call an e-business enhanced organization, a traditional organization that sets up e-business capabilities, usually e-commerce,while maintaining its traditional structure. Many Fortune 500 type organizations are evolving into e-business using this approach. They use the Internet to enhance (not to replace) their traditional ways of doing business. For instance, Sears, a traditional bricks-and-mortar retailer with thousands of physical stores worldwide started an Internet division whose goal is to make Sears “the definitive online source for the home.” Although Sears Internet division, Sears.com, represents a radical departure for an organization founded in 1886 as a catalog-sales company, it’s intended to expand, not replace, the company’s main source of revenue. Managing in an e-world, whether as an e-business enhanced, e-business enabled, or total e-business organization requires new insights and perspectives.

Globalization:

Management is no longer constrained by national borders. BMW, a German firm, builds cars in South Carolina. McDonald’s, a U.S. firm, sells hamburgers in China. Toyota, a Japanese firm, makes cars in Kentucky. Australia’s leading real estate company, Lend Lease Corporation, built the Blue water shopping complex in Kent, England, and has contracts with Coca-Cola to build all the soft0drink maker’s bottling plants in Southeast Asia. Swiss company ABB Ltd. has constructed power generating plants in Malaysia, South Korea, China, and Indonesia. The world has definitely become a global village! Managers in organizations of all sizes and types around the world are faced with the opportunities and challenges of operating in a global market.

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