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

Accounting Fundamentals

Accounting is often called the language of business. It helps people make decisions.

Types of Accounting

Tax Accounting

Helps determine how much is owed to the government for taxes. Rules are set by the government. Users include businesses and the government.

Managerial Accounting

Helps people inside the business make decisions. There are no strict external rules; it's customized depending on the type of company. Users are typically internal managers.

Financial Accounting

Helps people outside the business make decisions. It produces multi-purpose results and follows established rules (like GAAP or IFRS). Users include investors, creditors, and others.

Functions and Responsibilities of an Accounting Department

• Payroll: Calculate

Human Needs and Economic Foundations

Maslow's Hierarchy of Needs

Maslow's hierarchy outlines fundamental human needs:

• Basic Needs (Physiological)
• Safety
• Social (Love and Belonging)
• Esteem
• Self-Actualization

Fundamental Economic Questions

Every economic system must address these core questions:

1. What goods and services should be produced within the system?
2. For whom should these goods and services be produced?
3. How should they be produced?

Business Structures and Market Forces

Types of Business Ownership

• Sole Proprietorship: Owned by one individual.
• Partnership: Owned by two or more individuals.
• Corporation: Governed by a board and funded by stocks.
• Co-operative: Owned by workers or members.
• Franchise: Licensed business model.

Factors Influencing Supply and Demand

Key... Continue reading "Essential Principles of Business, Finance, and Economic Management" »

Company Overview

Key Company Details

• Company Name: The company is called...
• Nationality: It's...
• Company Type: It's a ... company.
• Products: It produces...
• Founding Year: It was founded in...
• Headquarters: The headquarters are in...
• Employees: It employs... people.
• Annual Revenue: Its annual revenue is... million dollars.
• Main Competitors: Its main competitors are...

Organizational Structure

The company has a typical manufacturing firm structure, divided into the following departments:

• Finance:
  • Financial Management (capital requirements, fund control, credit, and accounting)
• Production:
  • Production Control (scheduling and materials control)
  • Purchasing
  • Manufacturing (tooling, assembly, and fabrication)
  • Quality Control
  • Engineering Support
• Marketing:
  • Sales
  • Sales Promotion
  • Advertising
• Human

Key Economic and Societal Terminology

Gross Domestic Product (GDP)

The total market value of all the goods and services produced within the borders of a nation during a specified period.

Per Capita Income

The total national income divided by the number of people living in the nation. It is often used to measure a country’s standard of living.

Note: It is not the average income because it includes children and the non-working population.

Foreign Debt

The amount a country owes to other countries, either directly as a result of government-to-government loans or indirectly because of a negative balance of trade.

Growth Rate

The annual rate at which a country’s or an industry’s income increases.

Life Expectancy

The age to which an average person is expected... Continue reading "Essential Definitions in Global Economics and Social Metrics" »

TMS – Required Readings

Chapter 1

A. Werner, Schuler & Jackson (WSJ)

Companies performance has an influence on financial outcome

• New technology is just helpful if human resource are implementing it successfully
• Create happy employees
  • Increase in profitability
  • Productivity
  • Market value

Everyone is in charge of talent management

• Ensuring that organisation is applying knowledge and legal requirements
  • HR
  • Line managers
  • Employees themselves

External environment

• Constrains and opportunities how human resources are managed

Stakeholder and organisation are influencing each other

• Stakeholder benefit from success and are harmed by failures
  • Organisation wants to please stakeholders

Effective HR practices and policies in order to achieve the goal which is visible in

• Customer

Essential Business and HR Terms for Management

Key Terms and Definitions

Clear, concise definitions of common business, HR, and management concepts to improve understanding and decision-making.

Quality:

A measure of excellence or the state of being free from defect.

Perishable goods:

Goods such as food products that must be used within a short period of time.

Consumer:

A person or organization that uses a commodity or service.

Tariffs:

A tax imposed on imported goods and services.

Planning regulations:

A basic management function involving the formulation of one or more detailed plans to achieve an optimum balance of needs or demands with the available resources.

Capital:

Wealth, especially in the form of financial or physical assets.

Remuneration:

Payment

Key Economic Terminology and Definitions

Core Concepts in Macro and Microeconomics

Macroeconomics

The study of the economy as a whole.

Microeconomics

The study of individual parts of the economy.

Macroeconomics Objectives

The aims of a government relating to key economic performance indicators such as economic growth, inflation, and unemployment.

National Income

The value of income, output, or expenditure over a period of time.

GDP (Gross Domestic Product)

An internationally recognized measure of national income.

Understanding Economic Cycles and Output

Economic Growth

The increase in national income over time.

Downturn

A period in the economic cycle where GDP grows, but more slowly.

Recession

A less severe form of depression.

Depression or Slump

The bottom of

BIC

Define global strategy:A global corporation views the world As a single marketplace and has as its primarygoal the creation of a standardized goods and services that will address The needs ofcustomers worldwide. The global strategy is almost the exact opposite of the multidomestic strategy. Whereas The multidomestic firms believes that its customersin every country are fundamentally different and must be approached from Thatperspective, a global corporation Assumes that customers are fundamentally the sameregardless of their nationalities

How does BIC’s matrix structure enable it to Target geographic markets more effectivelyBy using geographical area as one part of the Matrix, BIC is able to create a marketing mix that is both appropriate

Strategic Management: Analyses, Decisions, and Actions

Strategic management involves the analyses, decisions, and actions an organization undertakes to create and maintain competitive advantages.

Strategic Management Process

• Strategy analysis
• Strategy formulation
• Strategy implementation

Strategic Levels

• Corporate level
• Business level (Cost leadership, differentiation, specialization)
• Operational level

Mission and Vision

• Mission: Current picture of the company.
• Vision: Goal of the company in the long term.

Criteria for Selecting Meaningful Objectives

• Timely: Defined time frame.
• Realistic: Achievable goals.
• Appropriate: Consistent with the mission and vision.
• Measurable: Includes key performance indicators (KPIs).
• Specific: Clear and concise message.

Organizational