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

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

Money

A commonly accepted medium of exchange.

Merchandise Money

It has the same value as the monetary unit as merchandise (hardness, portability, divisibility, homogeneity, limited supply).

Fiat or Token Money

A good that has little value as a commodity but keeps its value as a medium of exchange because people have faith in the issuer who guarantees the value of the paper or coins and ensures the quantity is limited.

Full-Bodied Paper Money

Certificates of paper that were backed by gold deposits of equal value to the certificates.

Promissory Note Money

Medium of exchange for the debt of a company or person.

Banking

Bank debt is what allows the depositor to withdraw an amount of money upon request.

Legal Tender

Token money issued by an institution that... Continue reading "Understanding Money and Banking Concepts" »

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" »

The Company as a System

A system is a set of interdependent elements that can each be identified and treated as a whole. The elements that comprise a system can be grouped according to several criteria and can form different subsystems within the overall or general system. Every subsystem is capable of being regarded as a system at a reduced level.

The company consists of a set of elements (people, facilities, etc.) which act in a coordinated manner with a clear direction and have a set of purposes and objectives to achieve. Therefore, a company is a system.

Characteristics of the Company as a System

• It is an open system. This means it relates to its environment; everything that happens outside the company affects and influences its decisions.
• It

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" »

The Origins of the Capitalist System

Mercantilism

Mercantilism is an economic theory driven by the need to build national wealth, understood as the accumulation of wealth, gold, and silver. As countries generally do not possess large natural reserves of these precious materials, the only way to accumulate them was through trade. This meant developing a positive trade balance, or in other words, ensuring that exports exceeded imports, as international payments were made in gold and silver.

Physiocracy

Physiocracy is an economic theory that considers the primary sector to be the only genuinely productive sector of the economy, capable of generating a surplus upon which all else depends. It is the only sector capable of creating wealth.

Economic Liberalism

Economic... Continue reading "Understanding the Capitalist System: Origins and Principles" »

The main purpose of the marketing plan is to be a concrete instrument for directing and coordinating the marketing effort of the company. The marketing plan is a document regulating commercial policy across the enterprise, goals, concrete actions, and timetable which take place.

Stages of Marketing Plan Development

• Analysis of the Situation. It is necessary to collect, analyze, and evaluate basic data for proper development of the plan. This analysis involves: Analysis of the actions undertaken by the company in prior periods; Study of the environment; Company image, products, sector, etc.; Staff qualifications (management, etc.); Distribution network (type of outlets, etc.); Competition (market share, etc.); Product (developed technology, costs,