Methods of Research in Business

There is deep relationship between business or commerce and accounting. That is the reason, you will see commerce education instead only accounting education in India. But base of commerce education is accounting. Only accounting converts data into useful information. So, accounting is helpful for decision making in business. If I have to talk about method of research in business, I will  not ignore methods of research in accounting.

Basically business is nothing but flow of good and bad decisions which are taken by businessman on the basis of financial reports which are provided by accounting.

I think for taking best decisions following are the basis of methods of research in business and accounting.

1st Base - Select the best method of Collection of Data

There are primary source and secondary source of data but which method you have to use for collecting data is very important because, if it is not relevant to your business, then you can not take best results of your business research.

2nd Base - Methods of Different Statistical Tools

There are different statistical tools like mean, median, mode, standard deviations which we use for creating relationship of know data with unknown data and try to reach the solution of business problem. For example, average of 10 years sales of Reliance company shows the average capacity of Reliance company to sell their products with in one year but standard deviation tells us the difference or deviation between actual sales and mean sales. So, researcher has to decide which is best method for him.

3rd Base - Methods of Testing Hypothesis

As scholar, you have collected immense data of accounting by using Internet and you want to its crux for your research in business. All your hard work will go waste, if you do not know the methods of testing hypothesis. With this testing, we check the accuracy of collected data and results. There are many tools like chi-square test, t-test and f-test. You can read its study material online and in many statistical books. To understand is very simple and as scholar, you should acquaint these methods.