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

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

Company: Balance Sheet as of January 31, 2010

Company: Profit and Loss Statement

January

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

Strategic Management

Strategy is the set of decisions a company can take on actions to be undertaken, and the resources that can be used in these actions. However, to achieve a series of business objectives at various levels, success must be sought. All management is given a rating based on economic, technological, or social factors, and considering the possible reactions that may occur against the competitive strategies of the company.

Items

Strategic Analysis

Before defining a strategy, a set of underlying elements must be considered as the basis for good strategic management:

1. Economic, Social, Political, and Technological Environment: Influence of external factors.
2. Strategic Capacity: Weaknesses that must be avoided and strengths that must be

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...

Operating Leverage Evolution Analysis

Initial Data and Key Ratios

The following data pertains to the company's sales income and operating profit for the years 2007, 2008, and 2009, along with a calculated operating leverage effect ratio:

• Sales Income:
  • 2007: €1,050,600
  • 2008: €881,900
  • 2009: €900,000
• Operating Profit (Result. Explotación):
  • 2007: €49,050
  • 2008: €77,515
  • 2009: €19,075
• Operating Leverage Effect Ratio (Change in Op. Profit / Change in Sales):
  • 2007: N/A (Base year)
  • 2008 (vs 2007): -0.17
  • 2009 (vs 2008): -3.23

Based on these initial data, it is observed that the increase in profit was less than proportional to the increase in sales, and in some cases, profit decreased despite sales changes.

Operating Leverage Effect Calculations (Initial

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...

Salary and Work Regulations

Salary

Salary compensates employees for their work. Employers are obligated to pay at least the minimum wage established by law.

Payment Methods

• Money: The most common payment method.
• In Kind: Goods or services provided as compensation.

Wage Rates

• Unit time
• Work unit
• Mixed system

Payment of Wages

Wages must be paid on the agreed date, within working hours or immediately after, at the workplace. Employees are entitled to advances.

Workday and Working Hours

The workday refers to the number of hours an employee works within a specific period. The work schedule specifies when an employee must work each day.

Normal Working Hours

• The maximum workday is 40 hours per week.
• Shift workers successively occupy the same jobs, following a specific