Notes, summaries, assignments, exams, and problems for Economics

There are several forms of business organizations, each with its own structure, advantages, and disadvantages. The choice of business organization affects factors like legal liability, taxation, management, and control. Here are the main forms of business organizations and their pros and cons:

1. Sole Proprietorship

A sole proprietorship is a business owned and operated by a single individual. It's the simplest form of business organization.

Advantages:

• Easy to set up and dissolve – Minimal legal formalities and low start-up costs.
• Complete control – The owner makes all decisions and keeps all profits.
• Tax simplicity – Profits are taxed as personal income, avoiding corporate taxes.

Disadvantages:

• Unlimited liability – The owner is personally

Business Name - A name or title under which a person or entity conducts a business.

Business Domain - A business's website address or URL on the internet that gives you an online identity or brand. It's a valuable part of your business identity and is an important marketing tool that can help customers find and identify with your business.

Trade Practices Legislation - The business owner must comply with trade practices legislation when establishing his or her business. The Competition & Consumer Act 2010 (Cwlth) is a federal law that specifies what business behavior is acceptable in relation to a wide range of issues.

Business Tax Compliance - A means by which governments finance their expenditure by imposing charges on citizens and corporate...

Loans are contracts where a financial institution provides an agreed amount of money to a company, which undertakes to return it with pre-set interest according to a depreciation plan until total repayment. Credit is a contract where a financial institution opens a credit line for a company, allowing it to access funds up to an agreed limit. Interest is paid only on the amount utilized, and repayment occurs within a specified period.

Bondholders and Shareholders: As an investor, you have two main choices for investing in a company: purchasing its shares or buying its bonds. Shareholders own stock in a company. Both investments offer opportunities to make money, but each carries inherent risks.

Forex refers to the foreign exchange market. Each...

Group 1: Business Status

Challenge

Something that needs great mental or physical effort in order to be done successfully.

Booming

Increasing or becoming successful and producing a lot of money very quickly.

Disappointing

Not as good as you had hoped or expected; not satisfactory.

Hanging On

If you hang on, you manage to survive, achieve success, or avoid failure in spite of great difficulties or opposition.

Flourishing

Growing or developing successfully.

Thriving

Very successful and developing well.

In Decline

When something declines, it goes downhill.

Struggling

Unsuccessful but trying hard to succeed.

In Demand

Needed or wanted by many people.

Group 2: Idioms Describing Success and Failure

Bring the House Down

This is when people are very entertaining and cause...

Values and Attitudes

Values and attitudes vary between nations, and even vary within nations. So if you are planning to take a product or service overseas make sure that you have a good grasp the locality before you enter the market. This could mean altering promotional material or subtle branding messages. There may also be an issue when managing local employees.

Education

The level and nature of education in each international market will vary. This may impact the type of message or even the medium that you employ.

Social Organizations

This aspect of Terpstra and Sarathy’s Cultural Framework relates to how a national society is organized.

Technology and Material Culture

Technology is a term that includes many other elements. It includes questions...

Distribution Channels

Exclusive Distribution (Lamborghini)

• Intermediary gains exclusive rights to sell product in specific geographic area.
• Limited number of intermediaries.
• Stronger distributor support.
• Greater control over product.
• Enhanced brand image.
• Higher markups.
• Exclusive dealing arrangements.

Selective Distribution (Apple)

• Manufacturer selects limited number of stores to sell product.
• Selection based on objective criteria.
• Maintains relative control.
• Expects above-average sales effort.

Intensive Distribution (Hacendado Products)

• Producer uses as many specialized outlets as possible to provide:
• Maximum brand exposure.
• Consumer convenience.

Extensive Distribution (Kit Kat)

• Producer uses as many outlets as possible (of any category) to provide:
• Maximum

Improvement methods:

1. Lean manufacturing is a system for maximizing product value. Six Sigma is a problem-solving methodology that uses its collection of tools to fix a specific project over a specific time period. All Six Sigma’s resources are targeted on this one project until the problem is fixed. While Lean Manufacturing encourages daily, general improvements, Six Sigma demands data-based, specific improvements for specific projects.

Six sigma:

Set of techniques and tools for process improvement. Their strategies seek to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.

The 6 Sigma method thus poses as a fundamental principle:...

IFRS for Small and Medium-Sized Entities (SMEs)

What are *not* the IASB's Objectives?

To strive for worldwide use of International Accounting Standards instead of national accounting standards.

What is the Primary Function of the IASB?

To develop and publish IFRS and strive for their worldwide use in general-purpose financial statements and other financial reporting.

What is the Primary Objective of IFRS?

IFRS sets out recognition, measurement, presentation, and disclosure requirements dealing with transactions and other events and conditions that are important in general-purpose financial statements.

What are the Major Differences Between IFRS and US GAAP?

Compared to US GAAP, IFRS are more principles-based, objective-oriented, and with emphasis on...

troškovna primjena??

How to use implications of multiple output cost functions?

Economies of Scope and Cost Complementarity

Economies of scope

• total cost of producing both products together is less than the total cost of producing both products separately

Implications for managerial decision making: managers alert to the possibility of profitably extending the product line to exploit economies of scope: reasons for mergers and acquisitions, reasons for not disinvesting a product line

Cost complementarity

• exists when the marginal cost of producing one output is reduced when the output of another product is increased:

Example of specialized investment

An investment in a particular exchange that cannot be recovered in another trading relationship

• Eg. Spending

Economic Systems and Their Characteristics

Command Economy

Comparable to a monopoly, in a command economy, the government has explicit control over the price and supply of a good or service.

Mixed Economy

The main characteristic of a mixed economy is that while some sectors reflect private ownership and freedom, and the flexibility of the law of demand, other sectors are subject to government planning.

Established Economies

Examples of established economies include:

• North America
• European Union
• Japan

Emerging Economies

Emerging economies typically face relatively low GDP per capita and a workforce that is either unskilled or semi-skilled, but they exhibit sustained economic reform and growth.

Free Trade Agreements

The creation of free trade agreements has...