Notes, summaries, assignments, exams, and exercises for Economics for Baccalaureate

Niche market - It is a small market that aims to meet specific user needs.

Core Accounting Concepts

Accounting Fundamentals

Accounting is a branch of economics that studies business assets, the rules, and the principles upon which a company's financial information is recorded. It provides a static snapshot of a company's financial health and aims to deliver crucial information to various levels and users within and outside the business, including:

• Managers
• Owners or Shareholders
• Workers
• Company Creditors
• Public Administration (for tax purposes)
• Unions

Understanding Business Assets

Business assets encompass the entire set of rights, tangible and intangible assets, and liabilities that a company possesses, valued in relation to its operational objectives.

Assets: Economic Structure of a Company

Assets represent the economic structure...

23. A monopoly is a market where there is a
only bidder (applicant) and a high number
search (offerors). Illustrative Example:
Telefonica, when he was the only telephone operator
Spanish fixed.
. Example of organizational structure: the structure
Hierarchical linear: It relies on the direct authority
superior over the subordinates. Each director
has responsibility for a wide range of
activities. All decisions go through him, and
Therefore, each person reports to a single boss.
. The Neto Heritage resources are owned or
liabilities not required of a company, formed by
capital and reserves, and the results of the exercise
until they are distributed. It is calculated as
difference between assets and liabilities.
· Trade electronic...

Understanding Economic and Political Systems

Inflation - A continued rise in prices. A deflationary economy - is a steady and general decline in the price level. Hyperinflation - Prices rise over 100% in a year, a breakdown of the system. Overproduction - Excess production or production in excess of market demand. Speculate - To do business, usually by purchasing goods whose price is expected to rise short-term, with the sole purpose of selling at the right time to make a profit.

The Stock Market Crash and the Great Depression

The Stock Market Crash was the most devastating fall in the history of the U.S. stock market, taking into account the full scope and the length of its aftermath. The Great Depression originated in the United States after...

Company Financial Function: Securing Investment Capital

The primary financial function of a company is to obtain the necessary financial resources to undertake investments. In accounting terms, assets represent investments, while financial liabilities are comprised of both own sources of financing (such as equity, reserves, and depreciation) and external sources (like loans, leasing, and credit).

Own Financing (Self-Financing)

Also known as self-financing, this refers to all financing activities within a company that are achieved through the profits it generates internally, without distributing these benefits to its owners. It primarily involves an increase in own sources, particularly from the reserve account.

Advantages of Own Financing

• Cost-Free

Economic Agents: Families, Firms, and the Public Sector

Families: Consumers who acquire goods and services to meet their needs. Decisions are influenced by preferences and income levels, adjusting budgets accordingly. Classified as:

• Entrepreneurs: Organize and coordinate production activities with autonomous goals.
• Workers: Provide labor in exchange for wages.
• Independent: Derive income from capital.
• Consumers: (Students, retired individuals, etc.)

Firms: Produce and distribute goods and services using factors of production provided by families. Objectives include:

• Maximize Profit: Increase revenue and reduce costs.
• Stabilize and Grow: Build customer loyalty and expand market share.
• Create Jobs and Wealth: Through subcontracting and employment.
• Respect

Fiscal Policy: Taxes, Spending, and Economic Views

Tributes: Required mandatory payments to families and businesses to meet public expenditure.

Rates: A type of tax levied by the state for the provision of public services by public administration.

Taxes: A kind of tribute that does not obey the individual payment service offered by the public administration.

Public Deficit: Occurs when public expenditure generated by state action outweighs public revenue.

Fiscal Policy: The set of decisions taken by the government on tax and public spending levels to influence aggregate demand and, in turn, production, employment, and the general price level.

Expansionary Fiscal Policy: Its aim is to increase aggregate demand to increase production and employment...

Key Business & Economic Terms

COMPANY: An economic unit that is used to produce goods and services.

ECONOMIC ACTIVITY: This is part of human activity that has to do with allocating scarce assets to fulfill unlimited wants.

CORPORATE SOCIAL RESPONSIBILITY: It is a responsibility firms voluntarily assume that goes beyond what the law requires.

MULTINATIONAL: A large company headquartered in one country with branches in other countries.

GLOBALIZATION: The extension of economic, cultural, and social processes across the world.

DECOLONIZATION: Consists of a transfer of economic activity from one company to another country for advantages that benefit the company.

An economic good: It is scarce, limited, and requires payment.

INDUSTRIAL PROPERTY: A property...

General Tax Base

The General Tax Base is calculated by adding the following balances:

• a) Positive or negative balance resulting from integrating and netting income and imputations following income:
  • Performance of work.
  • Performance of real estate.
  • Performance from movable capital: intellectual property, technical assistance, rental property, business or mine, sublease, and assignment of rights of image.
  • Income from economic activities.
  • Allocation of income from: Real Estate, controlled foreign company regime, transfer of image rights, investment institutions.
• b) Surplus of integrating and netting of gains and losses, not from the transfer of assets and liabilities, such as the additions of property and rights to the assets of the taxpayer, from, for

Market Classifications

• According to the law of the country:
  • Free market: Transactions are free.
  • Intervened market: Prices and quantities traded are imposed from outside the market.
• According to the amount of information agents:
  • Transparent: Agents are strongly related and have all possible information.
  • With friction: Agents do not possess all information.
• According to characteristics of the goods:
  • Perfect market: The merchandise is perfectly homogeneous.
  • Imperfect market: The same merchandise is available in various models with different characteristics.
• According to the power available to the operator:
  • Normal market: Neither buyers nor sellers may intervene in the price.
  • Market constraint: Buyers or sellers may act on the price or quantities traded.

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