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

More engaged employees = up to 21% productivity boost

Strategy

Creating a competitive advantage that generates superior, sustainable financial returns.

• Need to choose a position against the competition, player dynamic, and industry changes.
• Successful strategy considers: external environment, internal activities, and long-term industry/organizational changes.
• Decisions should be mutually reinforcing, leading to optimization of effort.

Aspirations

The purpose and goals of a person or corporation, essential for a strategy.

• Personal Aspirations: Intrinsically motivated, more than a goal; enduring and motivated from within, an expression of the search for fulfillment.
• Organizational Aspirations: Extrinsically motivated, encompassing mission, vision, and

Understanding the Sustainable Development Goals (SDGs)

The United Nations Sustainable Development Goals (SDGs) are a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity. There are 17 interconnected goals:

• 1. No Poverty: End poverty in all its forms everywhere.
• 2. Zero Hunger: End hunger, achieve food security and improved nutrition, and promote sustainable agriculture.
• 3. Good Health and Well-being: Ensure healthy lives and promote well-being for all at all ages.
• 4. Quality Education: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.
• 5. Gender Equality: Achieve gender equality and empower all women and girls.
• 6. Clean Water and Sanitation:

Strategy Identification and Selection

Strategy identification and selection involves defining the approaches a company will take across various dimensions:

1. Product Market Investment Strategies: (See the Ansoff Matrix)
2. Investment Strategies: Defined by the strategic approach in economic and financial terms (e.g., reducing costs, promotions, price reduction, quality increases).
3. Functional Area Strategies: The development of a business strategy involves specifying strategies for functional areas such as sales, brand management, R&P, manufacturing, supply chain, and finance. It is critical that the various departments are coordinated so they do not work at cross-purposes, as objective alignment can be difficult.

   The role of strategic objectives

Types of Cooperatives

1. Financial Cooperative: A financial institution where ethical and social aims take precedence over profit. Example: Lending money at lower interest rates, or providing loans to individuals who might not qualify at traditional institutions.

2. Housing Cooperative: Run to provide housing for its members, as opposed to generating rent for private landlords. Example: Owning an apartment building where each member is entitled to one housing unit.

3. Workers' Cooperative: A business owned and operated by the workers themselves, typically avoiding significantly higher wages for managers. Their primary priority is providing employment. These cooperatives often emerge when a business is about to fail, and workers take over to save their

Accounting Fundamentals: True or False Statements

1. The usual presentation of the retained earnings statement includes (1) Beginning balance, (2) Net income or loss, (3) Dividends, (4) Stockholders' contributions, and (5) Ending balance.

   Answer: False

2. Office Equipment is an example of a current asset account.

   Answer: False

3. Journalizing and posting closing entries must be completed before financial statements can be prepared.

   Answer: False

4. Assets, liabilities, and stockholders' equity accounts are real accounts and do not get closed at the end of the period.

   Answer: True

5. In a merchandising business, sales minus operating expenses equals net income.

   Answer: False (Sales minus Cost of Goods Sold equals Gross Profit; Gross Profit minus Operating Expenses equals

The Systematic Process of Accounting

Accounting is the systematic process of identifying (looking for financial information of the business), recording (writing down collected information), summarizing (classifying into accounts), analyzing (understanding financial information), interpreting (being aware of the impact), and reporting (communicating information) financial information in the form of financial statements to the decision-makers.

Functions of the Accounting Department

The functions and responsibilities of the accounting department include:

• Payroll: Calculating salaries, wages, checks, taxes, and employee benefits.
• Procurements and Inventory: Recording goods sold, purchases, products for sale, and liabilities.
• Cash Collectors: Identifying

The Welfare State: A Social Contract

The welfare state is a system in which the government provides citizens with a minimum level of education, healthcare, and financial support, even during challenging circumstances such as illness, retirement, disability, or unemployment.

Types of Taxes

Value-Added Tax (VAT)

A tax levied on the price of goods or services paid by consumers.

Income Tax

A tax on the income earned by individuals or businesses, including salaries and profits.

Company Tax

A tax on the profits generated by companies.

Social Security Contributions

Taxes paid by both employers and employees to fund social security programs.

Measuring Social Inequality: The Gini Coefficient

The Gini coefficient is a measure of social inequality, ranging from 0... Continue reading "Understanding the Welfare State and Social Security: A Comprehensive Guide" »

SMART Objectives

SMART objectives: Specific, Measurable, Achievable, Relevant, Time-bound

Aims vs. Objectives

Difference between aims and objectives: Aims are general statements concerning the overall goals, ends, or intentions of teaching. Objectives are the individual stages that learners must achieve to reach these goals.

AIDA

AIDA: Attention, Interest, Desire, Action. The objective is close to the sale.

Marketing Mix

Marketing mix: 4 aspects to be considered in the market: product, price, distribution, and promotion.

KPIs

KPIs: Numbers related to the objectives set within our strategy or annual marketing plan.

The Boston Matrix

The Boston Matrix: Relationship with the commission and the growth of the market.

The Body Shop (Auditing)

How do the auditing

• Modes of International Business

  • Merchandise Exports & Imports

-This is the most common mode of international business.

-Merchandise exports and imports are tangible products. They can be seen leaving and entering a country.

• • Services Exports & Imports

They are international non-product sales and purchases.

• • • Tourism and Transportation:

Are important sources of revenue for airlines, shipping companies, travel agencies, and hotels.

• • • Performance of Services

This refers to company's earnings in the form of fees (payments for the performance of a service).

1. Turnkey Operation

Is a deal where a company takes all responsibility for constructing, fitting and staffing a building (such as a school, hospital or factory) so that it is completely ready for the purchaser... Continue reading "Modes of International Business and Investment" »

What is Economics?

Economics is the study of choices that people make to satisfy their needs and wants.

Factors of Production

• Land
• Labor
• Capital
• Entrepreneurship

Goal of Entrepreneurship

The goal of entrepreneurship is to be successful and maximize profit.

Why is Scarcity a Basic Problem of Economics?

Scarcity is a basic problem because wants are unlimited, even when resources are limited. Therefore, it's crucial to use resources effectively.

What Issues Must Producers Address to Distribute/Allocate Resources?

1. What to produce?
2. How to produce?
3. For whom to produce?

Why Do Producers Study Productivity?

Producers study productivity to determine if resources are being used wisely.

Why is Sacrifice an Important Element of Economic Choice?

Sacrifice forces people to... Continue reading "Understanding Economics: Principles and Applications" »