Questions

The term derivative indicates that it has no independent value that is its value is entirely derived from the values of the underlying assets. The underlying asset can be securities, commodities , bullion, currency, livestock or anything else.

Just-in-time,or lean manufacturing, is a production management philosophy built around the continuous reduction of waste. It is suited for businesses where production efficiency is key. Anything that interferes with productivity is waste and,therefore, the enemy under JIT systems. Techniques that support JIT philosophy include reducing inbound inventory by creating supplier delivery schedules, minimizing outbound stock with customer delivery schedules and constant work in-house reducing scrap material and wasted man-hours. These techniques improve cash flow and maximize sales margins.

In 1814, George Stephenson developed steam engine to haul coal from mines to ports by railways. In 1830, the first railway train began to carry passengers and freight from Liverpool to Manchester.