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

Business Financing Challenges

Funding a small business is never easy. For many small businesses, getting a loan from a bank is near impossible.

This document addresses two critical questions for companies seeking financing:

• Why is it difficult for small businesses to get loans from banks?
• What alternative forms of financing are available to small businesses?

Why Bank Loans Are Hard to Get

As mentioned, the search for funding, especially for small businesses, is often costly and complicated. Access to capital is difficult for several reasons. It's not that banks are against lending to small businesses; in fact, banks want to lend to them. However, financial institutions often face challenges due to:

• Outdated, Labor-Intensive Processes: Traditional

Which topic is studied in Macro?

ALL (Output growth, Unemployment, Inflation)

Which is not a macroeconomic policy of governments

Stock prices

Equilibrium is defined as...

Aggregate output equals consumption minus investment

The saving/investment approach suggests that an economy is equilibrium when..

S=I

If S=-Co+(1-C1)(Y-T), the term (1-C1) is called the...

Marginal propensity to save

Which of the following indexes are used to measure the overall price?

ALL of ABOVE (CPI, PPI, GDP deflator)

The equilibrium condition for the goods market is called the...

IS relation

A decrease in the real money supply will shift the LM curve...

Upward and to the left

Lower real income... the demand for money and a lower price level... the demand for money

Decreases, increases

Liabilities

Chapter 1: Introduction to Operations and Supply Chain Management

What is Operations Management?

19) The collection of people, technology, and systems within an organization that has primary responsibility for providing the organization's products or services is called:

B) the operations function.

Understanding Supply Chains

20) Which of the following is NOT a flow typically found in a supply chain?

D) risk

21) Which of the following is primarily a supply chain management decision?

A) from whom to purchase materials

22) ________ is an example of an output of the transformation process.

C) Satisfied customers

23) Which of the following statements about the operations function is NOT correct?

C) The outputs of an operations function are always tangible.

24)

Macroeconomics Q&A

According to which of the following models is there no built-in mechanism which will automatically bring the economy back to full employment?

Basic Keynesian model

An increase in capital formation that expands long-run aggregate supply will

• increase output and
• decrease prices.

An increase in the long-run aggregate supply curve indicates that

potential real GDP has increased.

An anticipated change is an economic occurrence that

is foreseen by most economic participants.

Controlling the money supply to achieve desired macroeconomic goals is called

monetary policy.

If resource prices are fixed and the product selling price rises, then

profits will increase.

In the foreign exchange market, the price of one nation's currency in terms of

SWOT analysis: a form of strategic  that identifies and analyses the main internal strengths and weaknesses and external opportunities and threats that will influence the future direction and success of a business.

Disability Insurance: Core Principles & Practical Applications

1. True Statements on Disability Insurance

Louise is contemplating disability insurance but finds the industry a bit confusing. Which among the following statements concerning disability insurance is TRUE?

It is more probable that someone in their mid-twenties will suffer a disability lasting three months or more before they are 65, than someone who is 60 years old.

2. Monika's Occupational Disability Risk Class

Monika works for Geological Capital Corporation as a full-time surveyor. What is her likely disability risk class?

Class 3

3. Risk Management & Disability Income Protection

In general, risk management strategies are intended to protect individuals from the risks associated... Continue reading "Understanding Disability Insurance: Key Concepts & Scenarios" »

Alternative Business Financing

Alternative business financing has become an issue of great importance in the wake of the recent financial crisis. The crisis led to a reduction in bank credit for companies, which has allowed alternative forms of financing to emerge. Alternative financing is used to finance companies and individuals beyond banks. It is particularly attractive for SMEs and individuals.

In the past, in Spain, the sources of funding were basically from banks, with easy access and fast processing. Thanks to these facilities and good interest rates, bank financing was consolidated over other loans. As a consequence, before the beginning of the crisis, we found a situation where the weight of bank financing was predominant.

With the outbreak... Continue reading "Alternative Financing & Evolution of Capitalism: Trends" »

Business & Financial Terminology

Core Business & Financial Concepts

• Overheads: Gastos generales (General expenses)
• Operating Profit: Beneficio de explotación (Profit from operations)
• Reduced by 50% / Halved: Reducido a la mitad
• Budgets: A plan of how to spend an amount for a period of time.
• Huge Conglomerate: A large business organization comprising several companies.
• Running Up (a debt/bill): Contraer una deuda (To incur a debt or bill).
• Joint Venture: A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.
• Subsidiary: A company controlled by a parent company.
• Parent Company: A company that owns enough voting stock in another firm to control its management and operations.

Understanding Lean Systems and Operations

Lean systems are operations systems that maximize the value added by each of a company’s activities by removing waste and delays from them.

Core Philosophies: TPS and JIT

• Toyota Production System (TPS)
• Just-in-Time (JIT) System

The JIT Philosophy: Eliminating Waste (Muda)

The JIT philosophy focuses on eliminating waste, or muda, by cutting unnecessary capacity or inventory and removing non-value-added activities.

Goals of Lean Implementation

The primary goal is to eliminate the eight types of waste, produce services and products only as needed, and continuously improve the value-added benefits of operations.

Eight Types of Waste (Muda)

Identifying and eliminating these eight types of waste (muda) is central... Continue reading "Lean Systems Implementation: Eliminating Waste (Muda) and Optimizing Operations" »

Qualities of Entrepreneurs

1. Initiative

2. Drive and Determination

To turn ideas into practice.

3. An Ability to Plan Carefully

To minimize the risk of failure.

4. An Ability to Learn from Mistakes

And to see mistakes as "part of learning to succeed".

5. The Ability to Think Ahead

To identify opportunities for the future.

Factors to Consider When Selecting Suppliers

Quality

1. The quality of suppliers needs to be consistent.
2. Customers can be selective about quality.
3. Customers will associate poor quality with the business they buy from, not their suppliers.

Availability

1. If a supplier is often out of stock of items, it could affect the firm's production process.
2. So they need to make sure their supplier can provide stock in sufficient quantities.

Reliability and