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

DIVIDEND POLICY

Factors Influencing Dividend Decisions

Rate of Asset Expansion

Companies planning significant expansion may retain earnings to finance growth, avoiding the cost and time involved in raising new capital.

Profit Rate

A company's profitability directly impacts its ability to pay dividends. Higher profits lead to more available cash for distribution to shareholders.

Earnings Stability

Companies with stable earnings are more likely to consistently pay dividends compared to those with volatile earnings.

Access to Capital Markets

Easy access to capital markets allows companies to raise funds for expansion without retaining earnings, providing flexibility in dividend policy.

Control and Ownership

Management may retain earnings to maintain control...

Productivity

Productivity is the measure of output relative to the inputs used to create it.

Productivity Formulas

General Productivity: Quantity of Output / Quantity of Input

Labour Productivity: Output over a Given Period / Number of Employees

Production Methods

Lean Production

Lean production encompasses techniques used to minimize waste and maximize efficiency. This can involve reducing product development time and accelerating time to market.

Kaizen

Kaizen, a Japanese term meaning "continuous improvement", emphasizes eliminating waste to enhance efficiency.

Just-In-Time (JIT)

Just-In-Time (JIT) is a production method that aims to minimize or eliminate the need for finished goods inventory. Supplies arrive precisely when needed for production.

Production

Name three DHS Program Offices

-Office of Child Development and Early Learning (OCDEL); Office of Children, Youth and Families (OCYF); Office of Developmental Programs. (ODP)

Describe what NAS stands for and one change they recommended (Book)

National Academy of Sciences: the need to adjust for cost across geographic regions

Define what SNAP stands for and describe what it provides

-Supplemental Nutrition Assistance Program: Provides nutrition benefits to people in need so they can afford to purchase food.

List two effects of poverty as discussed in Power Point

-Negative effects on wellbeing of children, Homelessness, Illness, Poor Academic achievement.

US and Britain underwent a study between 1992 and 2003 regarding “stayers” of poverty. Approximately

Capacity Planning Considerations

Capacity can be stated in terms of inputs or outputs. Planning capacity too low results in unmet demand, while planning it too high results in higher costs.

Facility Considerations

Facility: Permanent, semi-permanent, or temporary commercial or industrial property such as a building, plant, or structure, built, established, or installed for the performance of one or more specific activities or functions. When deciding where to produce (Facility), important factors to consider:

• Proximity to market
• Availability of raw materials, transportation, power, and labor
• Climatic influences and community characteristics
• Taxes and inducements

Facility Layouts

1. Fixed-Position Layout

A layout that brings all resources required to...

Resources and Influence of Interest Groups

Interest groups leverage various resources to exert influence over Congress:

• Finance: Money empowers interest groups to run campaigns, make monetary contributions, purchase television advertisements, and employ a large staff. A larger staff translates to more opportunities for promotion, lobbying, and campaign contributions.
• Expertise: Congress respects and pays attention to interest groups perceived as experts in their respective fields. This perceived expertise can enhance their credibility and influence, allowing them to directly impact policy decisions.
• Size: Larger groups wield greater influence due to their ability to mobilize votes and resources effectively. Their size facilitates fundraising and

Chapter 21: International Financial Management Concepts

Key International Finance Terminology

• Know all terms and their definitions.

Multinational Corporations (MNCs)

What is a multinational corporation? MNCs engage in various forms of international business:

• Exporter
• Licensing Agreement
• Joint Venture
• Fully Owned Foreign Subsidiary

Foreign Exchange Rates and Influencing Factors

Understand foreign exchange rates and the factors that influence them:

• Purchasing Power Parity (PPP) and the Purchasing Power Parity Theory
  • Practice Problems 3, 4
• Inflation
• Interest Rates and the Interest Rate Parity Theory
• Balance of Payments (A trade surplus strengthens the currency; a trade deficit weakens it.)
• Government Policies (e.g., central bank’s actions)
• Other factors: stock

The Systematic Process of Accounting

Accounting is the systematic process of identifying (looking for financial information of the business), recording (writing down collected information), summarizing (classifying into accounts), analyzing (understanding financial information), interpreting (being aware of the impact), and reporting (communicating information) financial information in the form of financial statements to the decision-makers.

Functions of the Accounting Department

The functions and responsibilities of the accounting department include:

• Payroll: Calculating salaries, wages, checks, taxes, and employee benefits.
• Procurements and Inventory: Recording goods sold, purchases, products for sale, and liabilities.
• Cash Collectors: Identifying

Product Classification Types

• Consumer Products

  Products sold directly to families and individuals for personal use, not to companies.

• Business Products

  Products sold to organizations, including small and large businesses.

Specific Product Categories

• Convenience Products

  Inexpensive items requiring minimal purchasing effort (e.g., toothpaste, basic groceries).

• Shopping Products

  Items for which consumers are willing to spend more money and effort comparing options (e.g., jeans, electronics).

• Component Parts

  Finished items that become part of a larger product.

• Process Materials

  Materials used directly in the production of other items (e.g., glue, chemicals).

The Four Stages of the Product Life Cycle

Industry profit changes significantly as a product moves through...

Global Market Entry Strategies and Alliances

Market Entry Modes: Definitions and Characteristics

• Licensing: Represents a market entry strategy whereby a company grants rights to a foreign partner.
• Franchising: A variation of licensing.
  • Fact Check: Franchising is another variation of licensing. (T)
  • Fact Check: Franchising in a global context. (T)
  • Fact Check: Franchising is a variation of [X]. (F)
• Foreign Direct Investment (FDI): Honda's investment of $550 million in building a plant is an example of FDI. (T)
• Contract Manufacturing: Companies that use contract manufacturing may require a considerable commitment of management resources.

Licensing Strategy and Advantages

• Licensing is a contractual agreement. (T)
• Licensing as a market entry mode has several

Consumer

person who buys things or uses

Retailer

company or persona who sells directly to the public, especially through shops

Wholesaler

person or company that sells goods in large quantities to shop keepers

Manufacturer

person or organization that makes goods

Distribution

person or company that supplies goods to shops or another business

Transaction

business done between people, often involving a buyer and seller

Goods

things that are produced to be sold

Services

doing something for customers but not producing goods

Value

how much something is worth in money

Supply

quantity of goods available

Turnover

the value of the goods or services sold during a certain period of time

Margin

difference between costs and selling price

Discount

reduction in the usual price of something

Deposit

small...