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

Income Statement: Financial Performance

Measures a company's financial performance over a specific period of time.

• Revenue: First amount on right (credit)
• Expense: Second amount on left (debit)
• Revenues - Expenses = Net Income
• If net income is negative, it is called a Net Loss.
• Net income is allocated to either Dividends or Retained Earnings.

Retained Earnings: Company Profits

Represents the portion of net income that the firm has kept (as opposed to paying out as dividends).

• Ending Retained Earnings (ERE) = Beginning Retained Earnings (BRE) + Net Income (NI) - Dividends
• In a Statement of Stockholders' Equity, it would include common stock: ERE = BRE + Common Stock (Owner Contribution) + NI - Dividends

Balance Sheet: Financial Position Snapshot

Reports... Continue reading "Financial Statements & Core Accounting Principles" »

Classical Management Theory

Frederick Taylor's Scientific Management

Key Principles of Taylorism:

• Scientific Study of Work: Tasks should be scientifically studied to identify the most efficient methods for performing them. This involves breaking down complex tasks into smaller, simpler steps and analyzing each step.
• Division of Labor: Dividing work between management and workers. Managers are responsible for the planning and scientific analysis of work processes, while workers are tasked with executing the standardized methods.
• Standardization of Tools and Techniques: Taylor emphasized the use of standardized tools and techniques to minimize variability and optimize efficiency.
• Time and Motion Studies: Taylor conducted time and motion studies to

Have you ever come across a food product at the supermarket with a label saying Fair Trade? You may have wondered what exactly that means. Fair trade is an arrangement designed to help producers in growing countries achieve sustainable and equitable trade relationships.

Fair trade has two main objectives. On the one hand, the development of peoples. On the other hand, the fight against poverty.

The objectives are based on several pillars: Firstly, producers must have a minimum wage. Secondly, workers should not be children. Finally, the products shall be environmentally friendly.

Consumers pay more attention to the origin of the products they consume. They take into account, for example, how it has been obtained and they are willing to pay more... Continue reading "The Impact of Fair Trade and Ethics on Modern Society" »

Sensitivity Analysis

2 Members of the Restrictions:

Sensitivity analysis is important because it allows us to determine the opportunity cost of resources.

Obtain Efficient Solutions

By optimizing one objective and considering the other as a parametric constraint, we can obtain an efficient solution for each value between its ideal and anti-ideal points of the objectives included as parametric constraints in the model.

Difference in Pairwise Comparisons in AHP and PROMETHEE

There are two types of pairwise comparisons in AHP: between criteria in the same level with respect to a criterion in the next higher level and between alternatives with respect to a criterion in the next upper level of the hierarchy. PROMETHEE is only based on pairwise comparisons... Continue reading "Multi-Criteria Decision Analysis: Key Concepts and Techniques" »

Tax Deductions: An International Comparison

Income Tax Imposition

Income tax is imposed on gross income minus deductible expenditures. Generally, you cannot use expenses from one category of income to offset profits belonging to another. Expenses related to business activity may have specific deductions, while employment income often has standard deductions. Personal expenditures are generally not deductible. Mixed business and personal expenses are generally not deductible unless specific rules apply. For example, the UK does not allow deductions for mixed expenses. However, some countries like Australia, Sweden, and France allow deductions upon apportionment.

Specific Deductible Expenses

Commuting Expenses

Travel from and to work is generally... Continue reading "Tax Deductions and Capitalization: International Comparison" »

7) Describe the Ways in which database technologies could be used by an office stationery Supply company to achieve low-cost leadership.

Answer: Sales databases Could be used to make the supply chain more efficient and minimize warehousing And transportation costs. You can also use sales databases, as well as text Mining and sentiment analysis, to determine what supplies are in demand by Which customers and whether needs are different in different geographical Areas. Business intelligence databases could be used to predict future trends In office supply needs, to help anticipate demand, and to determine the most Efficient methods of transportation and delivery.

8) Describe the Ways in which database technologies could be used by a toy manufacturer

Public Relations

1. History: The International Public Relations Association (IPRA) was founded in the 40s when several Dutch and British PR practitioners discussed organizing PR professionals into a transnational society. Their goal was to raise standards of PR practice worldwide and improve the quality of PR practitioners. IPRA was established in London on 1 May 55. Nowadays, IPRA is an international organization with members from emerging and established countries. IPRA is governed by a secretariat in the UK. IPRA represents individual professionals, not agencies or companies. IPRA is recognized as an international non-governmental organization by the United Nations and has been granted consultative status by the Economic and Social Council... Continue reading "International Public Relations: Importance, Tips, and Strategies" »

The Second Industrial Revolution (1870-1914)

Rapid Industrialization

The Second Industrial Revolution was characterized by rapid industrialization due to the increased importance of the financial sector in industry and the rise of finance capitalism.

Innovations and Changes Leading to Increased Production

Innovations and changes led to an increase in production, including:

• New sources of finance: Joint-stock companies, banks, and stock exchanges provided new ways to raise capital for businesses.
• New business structures: Cartels, trusts, and holding companies emerged to reduce competition and increase efficiency.
• New technological advances: Improvements in the Bessemer converter, the invention of dynamite, stainless steel, and artificial fibers revolutionized

Understanding Life Insurance

Types of Life Insurance

Universal Life Insurance

Universal life (UL) insurance offers flexibility in premium payments and death benefits. It has a savings component where the cash value grows based on interest rates.

• Side Funds: UL policies may have side funds that offer additional investment options. Income earned in these funds may be taxable.
• Death Benefit Options: Policyholders can choose from various death benefit options, such as level, increasing, or decreasing, to suit their needs.
• Tax Implications: The tax treatment of UL policies depends on factors such as the type of policy and how it is structured.

Whole Life Insurance

Whole life insurance provides lifelong coverage with fixed premiums and a guaranteed death... Continue reading "Understanding Life Insurance: A Comprehensive Guide" »

Understanding Fair Trade and its Impact

Have you ever come across a food product at the supermarket with a label saying "Fair Trade"? You may have wondered what exactly that means. Fair trade is an arrangement designed to help producers in growing countries achieve sustainable and equitable trade relationships.

The Objectives of Fair Trade

Fair trade has two main objectives: the development of peoples and the fight against poverty. These objectives are based on several pillars:

• Producers must have a minimum wage.
• Workers should not be children.
• Products shall be environmentally friendly.

Consumers pay more attention to the origin of the products they consume. They take into account, for example, how it has been obtained, and they are willing to pay... Continue reading "Fair Trade: Benefits, Ethics, and Corporate Responsibility" »