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

1. Which is not a reason why the EU passed the 2009 regulation? à Employ the younger generations.

2. Prior to this regulation, all member states were consistently following rules and regulations. -> False

3. Which of the consequences are because of the inconsistent application of rules and directives? à Employing staff with a low professional qualification; Distortion of competition.

4. How might employing an unprofessional staff harm the image of the road transport operation sector? à Negligence in respect to road safety causing more accidents; Negligence in respect to social welfare.

5. Which is the only condition imposed on undertakings in the Community? à A community license.

6. Member States can adapt the conditions with which to comply... Continue reading "EU Regulation 1071/2009: Consequences, Compliance, and Requirements" »

What is the definition of Marketing?

The management process of getting the right product to the right customer at the right price to the right place and time. It’s also essential to the success of any business. It's not only about selling or advertising, but a business philosophy about satisfying consumer needs or demands.

(Identifying Anticipating and Satisfying consumer needs profitably)!!!!!!!

Describe the relationship between marketing and: Finance

Marketing costs money, so the marketing and finance department have to work together in setting appropriate budgets.

Describe the relationship between marketing and: Human Resource Management

Marketing information can enable more effective workforce planning in the HRM department. This can influence... Continue reading "Understanding the Relationship Between Marketing and Business Functions" »

Efficiency Ratios

Inventory Turnover

Determines if sales are sufficient to turn over or utilize inventory effectively. It indicates whether too much or insufficient inventory is being purchased.

Assets Turnover

A higher Assets Turnover Ratio (ATR) suggests that the company's management is utilizing its assets efficiently to generate sales.

Receivables Turnover

A higher receivables turnover indicates that a company is more efficient than its competitors in collecting its accounts receivables.

Profitability Ratios

Return on Sales (RoS)

"For every dollar sold, the company earns x profit." Measures operational efficiency.

Return on Equity (RoE)

"For every dollar invested by shareholders, the company earns x profit." Measures profitability relative to shareholders'... Continue reading "Key Financial Ratios for Business Performance Analysis" »

question 7

state & explain the 3 reasons 4 the downward slopping nature of ad curve

ad slopes downward people will buy more goods & services @ lower price levels,& vice versa.

real balances effect: the cash U hold is worth more when the price level falls,so U can buy more.

foreign trade effect: lower price levels in the united states convince customers 2 buy more american goods & fewer foreign goods.

interest rate effect: lower interest rates promote more borrowing & more spending.

question 8

state & explain the 2 reasons 4 the upward sloppng nature of as curve

as slopes upward;suppliers will bring more goods & services 2 market @ higher price levels,& vice versa.

profit effect: if there is no change in the cost of operating... Continue reading "Indifference curve, graph, income effect and substitution effect, a level economics" »

Service Pricing: Strategies and Value

Pricing Strategies: How Service Pricing Differs from Product Pricing

Service pricing presents unique challenges due to the variability of prices, the intangibility of services, and the difficulty in recognizing backstage costs. Unlike products, services often have a wide range of prices and quality within the same class. Service organizations use different terms to describe prices (e.g., offers, charges), which can confuse customers. Price can also be an indicator of quality, with higher prices sometimes evoking a perception of higher quality. However, pricing too low may raise questions about quality. Many services, such as restaurants, have higher total costs, including costs beyond paying suppliers.

Related

Understanding Companies

What is a Company?

A company is a legal entity made up of an association of persons, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise.

Types of Companies by Economic Sector

• Commercial Companies: Dedicated to buying and selling goods.
• Industrial Companies: Dedicated to producing goods.
• Agricultural Companies: Dedicated to cultivating and raising livestock.
• Extracting Companies: Dedicated to the extraction of riches from the earth.
• Service Companies: Dedicated to offering services.

Types of Companies by Size

• Small Companies: Companies with no more than 20 workers. Examples include grocery stores, restaurants, and bakeries.
• Medium Companies: Companies with less than 100 workers. These

The Stock Exchange Market

A bond is a document issued by a government or a company borrowing money from the public, stating the existence of a debt and the amount owing to the holder who must show this document in order to obtain repayment of the loan.

Difference between bonds and stocks is that stockholders are owners of the company they’ve invested in whereas bondholders are only lenders.

Issuer is the identity who borrows an amount of money and pays the interest.

-The principal of a bond is the amount that the issuer borrows which must be repaid to the lender.

The coupon is the interest that the issuer must pay.

Maturity is the date that the issuer must pay.

Indenture is the contract that states all the terms of the bond.

A stock is a piece of... Continue reading "Understanding the Stock Exchange Market: Bonds, Stocks, and Trading" »

10: Why were demand deposits considered as money?

Answer: Since demand deposits are accepted widely as a means of payment along with currency, they are also considered as money in the modern economy.

11: What would happen if all the depositors went to ask for their money at the same time?

Bank would not be able to give money to the depositors if they all went to ask for their money all at the same time. This is because, banks keep only about 15% and would have already used the balance portion of their deposits to extend loans.

12: What were the reasons that make Swapna’s situations so risky? Discuss factors: pesticides, role of money lenders, climate.

Pest attack, exploitation by money lenders, and lack of monsoon are the reasons that make Swapna’s... Continue reading "Understanding Money, Risk, and Collateral in the Economy" »