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

Communication Channels

Effective communication channels: The communication must be effective and not distorted. According to Koontz, an agent is not needed as much as information. The established channels and command levels are a consequence of the leadership styles:

• Descending communication: Management transmits the information the company believes is desirable for the institutions and to carry out the company's orders and policies. It occurs through the hierarchical line of direction, mediante meetings with middle management. It is self-communication of authoritarian styles.
• Upward communication: Reflecting the situation of subordinate levels while collecting aspirations and concerns of their own. It uses various means of participation: meetings,

Decoding Marketing Promotions

National Commission of Securities Market Website Analysis

On the website of the National Commission of Securities Market, in the short term, the company mainly used debts to credit institutions, and thus lowered its derivatives, leasing, and creditors for bonds and short-term loan obligations.

In the case of long-term debt, it is used primarily for the issuance of bonds, like borrowing to bonds/t with a nominal value of 700,000 in May 2007, of which 100,000 in nominal repurchase in 2008, obtaining a great benefit in repurchase of 36,327.

Another means of financing long-term loans has been to credit valued at 264,561 at the end of 2008. In the long term, another source of funding such as financial derivatives and leasing is also used.

Business Financing

Need for Company Capital

The need for a company's capital relates to the role of company resources and all activities designed to obtain the necessary funds and allocate them for the most rational use. This allocation aims to yield a higher return with less risk and cost.

Sources of Funding

Sources of Funding: By Origin

According to their origin, funding sources can be classified as:

• Internal Resources: Generated by the company itself, constituting reserve funds and depreciation.
• External Resources: Obtained from outside the firm, including contributions from partners, capital increases, loans issued by the company, and various forms of debt through loans and credits.

Sources of Funding: By Ownership

According to the title or ownership, resources can... Continue reading "Company Funding Sources and Capital Needs" »

Balance Sheet

Assets

A) Non-Current Assets

• Intangible Assets:
  • Research and Development
  • Industrial Property
  • Goodwill
  • Computer Applications
  • (- Accumulated Amortization of Intangible Assets)
• Tangible Fixed Assets:
  • Land and Buildings
  • Machinery
  • Transportation Components
  • Equipment
  • Information Processing
  • Furniture
  • (- Accumulated Amortization of Tangible Assets)
• Investments in Group Companies
• Long-Term Financial Investments:
  • Long-Term Credits
  • Long-Term Investments in Equity Instruments

B) Current Assets

• Stocks:
  • Merchandise
  • Raw Materials and Supplies
  • Work in Progress
  • Finished Products
  • Advances to Suppliers
• Accounts Receivable:
  • Customers
  • Trade Bills Receivable
  • Discounted Trade Bills
  • Trade Bills Receivable Under Management
  • Outstanding Commercial Effects
  • Other Receivables from Social

Company Description

A company is an entity consisting of capital and labor as factors of production. It is dedicated to industrial, commercial, or service provision with a profit motive and carries personal or social responsibility.

Certification of Company Name

Request a name for your company from the Central Commercial Register. We recommend providing three options to ensure availability.

Procedures at the City Council

• Building Permit
• Activity Installation License
• Business License (payment required)

Procedures at the Ministry of Labor and Social Affairs

• Registration in the special scheme for self-employed individuals
• Company registration with Social Security
• Communication of workplace opening (number of employees)

Deposit of Capital

Open a bank account... Continue reading "Starting a Business: Essential Steps and Considerations" »

Goods and Services

Consumer goods are those directly employed by individuals to satisfy a need, therefore not requiring a subsequent operation process.

Intermediate goods are those used in the manufacture of other goods, not resulting in direct use for the satisfaction of needs.

Capital goods are those that, once made, will serve to produce other goods or services.

The corresponding service is in exchange for shares or serious efforts to repair, restore, or completely clean products that have imperfections or shortcomings for use in the satisfaction of needs.

Political Structure

• Sole Proprietorships (OPEs): Have a single owner. In this case, the individual is responsible for all contributions.
• Partnerships or Limited Partnerships: Two or more partners

Economic Policy

Economic policy involves state intervention in the economy to achieve economic objectives, such as economic growth, full employment, and price stability. Key organizations directly implement economic policy. Indirectly, various groups like banking institutions, large multinationals, and entrepreneurs' associations also play a role.

Types of Economic Policy

• Fiscal Policy: Intentional state action to increase or decrease economic activity through funds and taxes.
• Monetary Policy: Measures taken by the central bank to maintain price stability by varying the amount of money in circulation.
• Foreign Policy: State interference to regulate transactions with other countries, such as changing the currency exchange rate.
• Rental Policies: Aim

Light Industry

Definition

Light industry refers to the sector that produces goods for direct consumption using raw materials or semi-finished products. It's also known as 'light' because its facilities are smaller (compared to heavy industry) and require less investment and labor for general production. These industries are generally less polluting than heavy industries and are often located near consumption centers with easy access to sales markets (e.g., food, textiles, furniture).

Trends

• Development of cutting-edge industrial technology: Industries are constantly evolving and adopting new technologies to improve efficiency and competitiveness.
• Industrial Concentration: Companies are associating or merging to become more competitive. This allows

Understanding Economic Activities

Economic activity refers to any process by which we obtain the products and services that meet our needs. Economic activities encompass three stages: production, distribution, and consumption.

Benefits, Assets, and Services

A benefit is the result of the difference between revenues and expenditures from economic activity. If expenses exceed revenue, losses will occur.

An asset is any object that fulfills a need and possesses value.

A service is a benefit intended to satisfy a personal or social need, but its production does not result in a tangible object.

Investment and Companies

Investment is the allocation of money intended to start a business or maintain and improve an existing one, with the goal of generating... Continue reading "Understanding Economic Activities: Production, Distribution, and Consumption" »