This acknowledges the fact that investors are not always rational, have limitationson self-control, and are motivated by their own prejudice. According to this casestudy, behavioral finance also exists actively. Zafar faces the financial stress whenhe figures out the fee structure of private school that is Rs 20,000 per month forone child. Obviously, he started thinking so much that how he will manage thefinancial crises once he transfers his kids to the private school. He considered allthe pros and cons before he takes the final decision, but here societal pressure hasa major involvement in his decision making process.
Entrepreneurship is the phase in which a new business is planned, launched andmanaged, and is always initially a small business. Entrepreneurship is defined asthe ability, capacity and willingness to create, organize and manage a newbusiness and any risks associated to make profit. Throughout the world,entrepreneurs take keen interest in developing a value perception about theirproduct or service in the mindset of the society. A problem is identified, andinnovative solutions are introduced by entrepreneurs. In Pakistan, over the recentdecades, we find numerous examples of how entrepreneurs have achieved successby educating or exploiting a certain mindset. For example, in this case study, themindset of a common man Zafar has been exploited when he visited the privateschools. Not only Zafar became the target of these clever entrepreneurs, hisfriends were also targeted. Obviously, they would have also visited the luxuriousenvironment of these schools, that’s why they suggested it to Zafar. However, onecannot deny the fact that courses are same as taught in public schools, but peopleperceives that it is much better than public schools. It is just a matter ofperception that is being cultivated in the mindset of these people. There are otherexamples associated with this concept. For example, the packaged milk wasintroduced as a hygienic alternative for loose milk. Gradually, the majority of thesociety succumbed to this idea of packaged milk being a much safer product toconsume. One example is of body building supplements. Body buildingsupplements is a recent phenomenon especially in Pakistan and entrepreneursactively indulge in educating their market about the supplements. Previously thenatural protein sources were considered safe but gradually the societal head spaceis diluted by entrepreneurs to achieve success. The profitability ratios consist of net profit ratio and operating profit ratio. Netprofit ratio 42.12%. This NP ratio shows a positive indication and assess theoverall performance of the activities of the school, and it also shows the measureof how well the trading activities of a school are conducted. Operating profit ratiois more than 100% that is 119.50%. The operating profit ratio creates a strongcorrelation between operating income earned and operating net revenue.
Questions for Advance AssignmentImagine yourself as Zafar. What factors would you consider before taking such
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Private School, Public School, Independent school, private schools