Notes, abstracts, papers, exams and problems of Economy

Workers' Rights and Duties

Rights

Workers' rights are listed in the Workers' Statute and include:

• Weekly Rest: At least one and a half days.
• Annual Holiday: Minimum of 30 days of paid leave. This cannot be replaced by financial compensation, except when termination of employment hinders its enjoyment.
• Non-discrimination

Duties

• Fulfill the requirements of the job.
• Comply with hygiene and safety measures.
• Contribute to improving productivity.
• Respect the employer's authority.

Employment Contracts and Collective Agreements

Labor relations are governed by common sources (the Constitution contains laws applicable to the workplace) and exclusive sources (contracts and collective agreements). Collective agreements are freely negotiated in writing between representatives... Continue reading "Workers' Rights, Duties, Contracts, and Wages in Spain" »

Effects of Inflation

• Loss of Buying Power: When inflation occurs, the prices paid by economic agents for goods and services are higher, which reduces the purchasing power of money.
• Uncertainty: Prices contain valuable information for economic agents to make decisions. Inflation alters prices, destroying their capacity to inform and provoking uncertainty.
• Loss of Competitiveness of Domestic Production Overseas: This will increase the volume of our exports of goods and services.
• Unemployment: The two effects of inflation signals cause a break in the level of employment. If money loses purchasing power, consumption and investment fall. As global demand decreases, so do production and employment. If economic agents are making decisions under conditions

Equity, Liabilities, and Assets

Equity

Equity is the residual interest in the assets of the company after deducting all of its liabilities. It primarily consists of funds provided by partners and undistributed profits in the form of reserves. The equity equation can be expressed as:

Net Worth = Assets - Liabilities

Liabilities

Liabilities comprise the totality of present obligations arising as a result of past events. The company expects the extinction of these obligations to cause an outflow of resources that can produce profits or earnings in the future. Liabilities are formed by:

• Current Liabilities: This consists of the set of obligations that the company must face in the short term.
• Non-Current Liabilities: This consists of the financing the

Classification of Activities

A) In Terms of Value Added

• Value-added activities: These activities enhance customer interest in the company's output (product or service).
• Non-value-added activities: These are activities that the customer does not perceive as valuable or that are not considered differentiating compared to the competition.

B) Based on Their Relationship with the Cost Objective (in Terms of Cost Causality)

• Activities related to production volume: These are activities whose costs depend critically on the volume (number of units) of production.
• Activities related to the organization of the production process (batch or order activities): These are activities whose costs are related to the number of processes at work in the company (e.g.,

Accounting and Its Function

Accounting serves to collect and quantify economic-financial information generated within a business. This information is then communicated to end-users so that, once verified and analyzed, it can influence decision-making.

Accounting Information

Key components of accounting information include:

1. Mandatory accounting books
2. The annual accounts (balance sheet and profit and loss account)
3. The accounting mechanics

Required Accounting Books

• Accounting-General Plan: Mandatory annual accounts for small companies:
  • Balance sheet
  • Income statement
  • Statement of changes in equity
  • Notes
• Commercial Code:
  • Book inventory and annual accounts
  • General ledger

The Annual Accounts

Balance Sheet

The balance sheet is an accounting document that reflects... Continue reading "Business Accounting: Assets, Liabilities, and Equity" »

Trade Constitution Society Proceedings

Steps to Establish a Company

1. Verify trade name availability.
2. Open a company bank account.
3. Draft the company's constitution.
4. Notarize the company's constitution.
5. Obtain interim CIF (Tax Identification Code).
6. Pay taxes and legal fees.
7. Register the company in the Commercial Register.

Marketing Techniques

Understanding the Business Environment

Analyze the enterprise environment to identify opportunities for development. Combine four key elements to achieve objectives: product pricing, distribution, and promotion.

Product Characteristics

• Packaging: Facilitates transport, storage, and preservation.
• Expanded Product: Includes additional services like home delivery and technical support.

Pricing Methods

1. Cost-Based: Add desired

Profit and Loss (Income Statement)

The profit and loss statement, also known as the income statement, summarizes a company's revenues, costs, and expenses during a specific period.

A) Operating Result

• Income:
  • Income from holdings
  • Product sales
  • Service provisions
  • Other regularly obtained income
• Operating Expenses:
  • Purchase of raw materials, components, and merchandise
  • Salaries and Social Security (SS)
  • Rent, supplies, repairs, and conservation expenses
  • Amortization (Depreciation)

B) Financial Result (I-II)

• I) Financial Income:
  • Interest and dividends received
• II) Financial Expenses:
  • Interest paid

C) Result Before Taxes (A + B)

D) Net Result (After 30% Corporate Tax)

Balance Sheet

Assets

1. Non-Current Assets
   • a) Intangible
   • b) Tangible (Material)
2. Current Assets / Circulating

Economy

Definition: Economics is a social science that studies the processes of production, exchange, distribution, and consumption of goods and services.

Classes of Goods

Free Goods: These goods are freely available in nature and have no economic value. They are not owned by anyone in particular, but rather by everyone.

Economic Goods: These goods are the result of human effort and technology, and therefore have economic value.

Unemployment

Definition: Unemployment occurs when individuals in the active population are not employed but are actively seeking work.

The Company

Definition: A company is a production unit responsible for gathering, processing, and distributing goods and services necessary for human needs.

Production Factors

Definition: Production... Continue reading "Economics: A Comprehensive Overview" »

Economic Activity

Economic activity encompasses all human endeavors to meet their needs. This involves:

Goods Production

Combining natural resources, technology, and labor to create goods and services for consumption.

Types of Goods

• Consumer Goods: Directly satisfy consumer needs.
• Produced Goods: Machines and tools used to produce other goods.

Marketing

Distribution and sales involve storage, transportation, and selling.

Sales Types

• Wholesale: Buying and selling large quantities to other traders.
• Retail: Buying from wholesalers and selling smaller quantities to the public.

Consumption

The use of goods and services by individuals.

Factors of Production

The essential elements for producing goods and services:

Natural Resources

Resources found in nature, transformed... Continue reading "Economics: Production, Consumption, and Market Dynamics" »

Business Concept

A company is a collection of items, organized and coordinated by management, designed to meet objectives while operating under conditions of risk.

Location Factors

• Market Demand: Consider the local interest in your product.
• Raw Materials: Assess material quality, cost, and availability.
• Labor Market: Evaluate potential employees, expertise, labor costs, and legal considerations.
• Infrastructure and Transport: Consider transport accessibility and connections with other businesses.
• Utilities: Evaluate the availability and cost of essential utilities like electricity, water, and telephone lines.
• Construction and Land Costs: Remember that prices vary by location.
• Legislation: Understand relevant tax, commercial, and social regulations.
• Investment