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

Types of Internal Control

Accounting Internal Control

These are the tools that implement detailed management to control operations.

Administrative Internal Control

These consist of procedures and records management that help in achieving the objectives of the company.

Internal Accounting Control

This involves procedures or records that relate primarily to accounting.

Internal Accounting Control Purposes

• Transactions are made in accordance with general approval.
• Transactions are recorded as necessary.

Principles of Internal Accounting Control

• Responsibility must be clearly stated.
• Division of responsibilities within the structure.
• Segregation of operations and accounting.
• Access to assets is permitted only by authorization and management.
• The activity of registered

Time Value of Money and Interest Formulas

Time Value of Money (TVM): Money received sooner is more valuable than money received later because of the returns you can earn by investing it.

Compound Interest Formulas

• Standard Compounding: FV = PV(1+k)ⁿ (Use if asked to compound for any period > 1 day).
• Continuous Compounding: FV = PV x e^{APR x t} (Use if compounding is continuous, < 1 day, where t = years).

In these formulas, k = APR/m and n = t x m. The Future Value Interest Factor is (1+k)ⁿ, while the Present Value factor is its inverse.

The Annual Percentage Rate (APR) is also known as the Quoted Rate or Nominal Interest Rate. It should not be used directly for TVM; it must be converted to an Effective Rate based on the compounding frequency...

General Equilibrium and Welfare Economics

Efficiency and Equilibrium Concepts

• Pareto efficient: Any reallocation harms at least one person.
• Partial equilibrium analysis: One market in isolation.
• General equilibrium analysis: How equilibrium is determined in all markets simultaneously.
• Contract curve: The set of all Pareto-efficient bundles.
• First Welfare Theorem: The competitive equilibrium is efficient.
• Second Welfare Theorem: Any efficient allocation can be achieved by competition.

Mutually Beneficial Trades and Production

• Conditions for mutually beneficial trades:
  1. Utility maximization
  2. Usual-shaped indifference curves
  3. No interdependence
• Equilibrium conditions:
  1. Two indifference curves are tangent
  2. MRS_a = MRS_b
  3. No further mutually beneficial trade
  4. Allocation

Global Retail Marketing Fundamentals

Global Retail Marketing: A retailer is a company or individual that sells products directly to the end consumer.

The STP Marketing Model

STP: Companies use this model to develop and implement their marketing strategy.

• Segmentation: Dividing a market into smaller groups of consumers with similar needs or characteristics.
• Targeting: Selecting the specific segments to serve.
• Positioning: Proposing a unique value for the target segments.

Evolution from 4Ps to 7Ps

The transition from the 4Ps to 7Ps reflects the growing understanding of modern marketing strategy:

1. Product
2. Price
3. Place (Distribution)
4. Promotion
5. People
6. Process
7. Physical Evidence

Points 5, 6, and 7 specifically focus on the customer experience.

The 3Ws and Key Retail

Understanding Investment Funds

An investment fund is a portfolio of financial assets managed by a market expert and held collectively by investors. These funds are typically approved by a market authority.

Benefits of Investing in Funds

• Delegation: Benefit from constant, flexible capital management by specialists and economies of scale.
• Diversification: Reduce specific risk by spreading investments across various securities.
• Enhanced Security: Protect investments through a legal and regulatory framework while benefiting from investment liquidity.

Among traditional financial investments, funds are a secure choice for the long term, providing portfolios with consistent returns and professional management expertise.

Credit for Private Banking

Private...

As the number of eCommerce sites grows each day, more and more people prefer to shop online for convenience, choice, and ease of price comparison. The online shopping experience is now easier than ever before.

Benefits of Online Shopping

On the one hand, the vast majority of online stores offer prices that are much lower than what you will find in a physical store. There are several good reasons for this.

Most physical stores have a restricted array of services and products. They can only carry a limited number of items, and there are many policies affecting access to services and products. As an example, there may be a certain item that is only available to those versions of the business that you can get from the mall.

Shopping online enables...

Social Issues and Economy Vocabulary

Explore essential terms related to society, economics, and consumer habits translated into Spanish:

• Refugees: Refugiados
• Low wages: Salario bajo
• Homelessness: Sinhogar
• Welfare programmes: Asistencia social
• Unemployment: Paro
• Slums: Suburbio
• Health care: Atención sanitaria
• Prejudice: Prejuicio
• Inequality: Desigualdad
• Overcome: Superar
• Juvenile delinquency: Delincuencia juvenil
• Gangs: Bandas
• Curfew: Toque de queda
• Corruption: Corrupción
• Wealth: Riqueza

Shopping and Consumer Goods

Key vocabulary for shopping, retail, and commercial transactions:

• Purchase: Comprar, adquirir
• High-end: De alto nivel
• Brand: Marca
• Label: Etiqueta
• Good value: Buen precio, bien de
• Fitting room: Cambiador
• Free delivery: Gratis
• Shipping costs: Gasto de envío
• Online

Economy and Stakeholders

Stakeholders are people who have a direct impact on a business because the actions of the business affect them.

Two Main Types of Stakeholders

• Internal: People who work within the business.
• External: People outside of the business.

Stakeholder Interests

Internal Interests

• Shareholders: Return on investments.
• CEO: Coordinating business strategy and delivering profit and returns to satisfy shareholders.
• Senior Manager: Strategic objectives.
• Middle Manager: Tactical objectives.
• Foreman: Organizing tactical objectives and formulating operational plans.
• Employees: Protecting their rights and working conditions.

External Interests

• Government: How the business operates.
• Suppliers: Stable conditions.
• Customers: Meeting their needs.
• People in

Marketing Orientation - An outward looking approach basing product decisions on consumer demands as established by market research. The business attempts to produce what consumers want, this requires market research and market analysis to indicate consumers demand.

Benefits - Newly developed products failing are reduced. Consumers' needs are being met with appropriate products.Product Orientation - An inward looking approach that focuses on making products that can be made or have been made for a long time and trying to sell it. Invent products with the belief that they will find consumers to purchase them.Commercial Marketing - Satisfying consumers' needs for profit.

Strategy Identification and Selection

Strategy identification and selection involves defining the approaches a company will take across various dimensions:

1. Product Market Investment Strategies: (See the Ansoff Matrix)
2. Investment Strategies: Defined by the strategic approach in economic and financial terms (e.g., reducing costs, promotions, price reduction, quality increases).
3. Functional Area Strategies: The development of a business strategy involves specifying strategies for functional areas such as sales, brand management, R&P, manufacturing, supply chain, and finance. It is critical that the various departments are coordinated so they do not work at cross-purposes, as objective alignment can be difficult.

   The role of strategic objectives