This acknowledges the fact that investors are not always rational have

This acknowledges the fact that investors are not

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This acknowledges the fact that investors are not always rational, have limitations on self-control, and are motivated by their own prejudice. According to this case study, behavioral finance also exists actively. Zafar faces the financial stress when he figures out the fee structure of private school that is Rs 20,000 per month for one child. Obviously, he started thinking so much that how he will manage the financial crises once he transfers his kids to the private school. He considered all the pros and cons before he takes the final decision, but here societal pressure has a major involvement in his decision making process.
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Entrepreneurship is the phase in which a new business is planned, launched and managed, and is always initially a small business. Entrepreneurship is defined as the ability, capacity and willingness to create, organize and manage a new business and any risks associated to make profit. Throughout the world, entrepreneurs take keen interest in developing a value perception about their product or service in the mindset of the society. A problem is identified, and innovative solutions are introduced by entrepreneurs. In Pakistan, over the recent decades, we find numerous examples of how entrepreneurs have achieved success by educating or exploiting a certain mindset. For example, in this case study, the mindset of a common man Zafar has been exploited when he visited the private schools. Not only Zafar became the target of these clever entrepreneurs, his friends were also targeted. Obviously, they would have also visited the luxurious environment of these schools, that’s why they suggested it to Zafar. However, one cannot deny the fact that courses are same as taught in public schools, but people perceives that it is much better than public schools. It is just a matter of perception that is being cultivated in the mindset of these people. There are other examples associated with this concept. For example, the packaged milk was introduced as a hygienic alternative for loose milk. Gradually, the majority of the society succumbed to this idea of packaged milk being a much safer product to consume. One example is of body building supplements. Body building supplements is a recent phenomenon especially in Pakistan and entrepreneurs actively indulge in educating their market about the supplements. Previously the natural protein sources were considered safe but gradually the societal head space is diluted by entrepreneurs to achieve success. The profitability ratios consist of net profit ratio and operating profit ratio. Net profit ratio 42.12%. This NP ratio shows a positive indication and assess the overall performance of the activities of the school, and it also shows the measure of how well the trading activities of a school are conducted. Operating profit ratio is more than 100% that is 119.50%. The operating profit ratio creates a strong correlation between operating income earned and operating net revenue.
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Questions for Advance Assignment Imagine yourself as Zafar. What factors would you consider before taking such
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  • Fall '19
  • Private School, Public School, Independent school, private schools

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