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

Principles of Management

• Division of Work
• Authority and Responsibility
• Discipline
• Unity of Command
• Unity of Direction
• Subordination of Individual Interest to General Interest
• Remuneration of Personnel
• Centralization
• Scalar Chain
• Order
• Equity
• Stability of Tenure of Personnel
• Initiative
• Esprit de Corps

Planning

The role of management in defining goals, determining strategies to achieve them, and integrating and coordinating activities through plans.

Organizing

A management function that involves determining which tasks need to be done, who performs them, how they are grouped, who reports to whom, and where decisions are made.

Personnel Integration

This involves staffing positions within the organizational structure and maintaining those positions with qualified... Continue reading "Core Concepts of Business Management" »

Classification by Legal Form

All companies must have a legal form, which is determined, among other things, by the number of people involved in creating it, by the capital provided, and by the size. We can distinguish:

1. Sole Trader: When the owner of the company is the only person who assumes all risk and is responsible for managing the business.
2. Companies (Societies): Where people decide to invest in a company, they may form a society. At present in Spain, the following types of companies exist:
   • Sociedad Anónima (S.A.)
   • Sociedad Anónima Laboral (S.A.L.)
   • Sociedad de Responsabilidad Limitada (S.L.)
   • Sociedad Cooperativa de Responsabilidad Limitada
   • Sociedad Colectiva
   • Sociedad Comanditaria
   • Regular Venture Contract Accounts

Classification by Activity Sector

Economic... Continue reading "Key Criteria for Classifying Business Organizations" »

Basic Economic Definitions

Economics: The study of how societies use scarce resources to produce valuable goods and services and distribute them.

Efficiency: Effective use of society's resources in satisfying people's wants and needs.

Microeconomics: Concerned with the behavior of individual entities such as markets, firms, and households.

Macroeconomics: Concerned with the overall performance of the economy.

Inputs: Commodities or services that are used to produce goods and services.

Outputs: The various goods and services that result from the production process.

Factors of Production and Markets

Factors of Production: Land, labor, and capital.

Production Possibility Frontier: Shows the quantity of goods that can be efficiently produced by an economy.... Continue reading "Key Economic Concepts and Principles" »

Liabilities

Liabilities represent the monetary valuation of resources that have helped finance the property and rights of the asset. These include, for example, contributions from owners and the company's debts with banks and suppliers.

Classification by Enforceability

Items are typically ordered from lowest to highest enforceability:

Fixed Liabilities

These include elements with lower enforceability:

• Unenforceable: Resources that the company does not owe to any specific creditor (e.g., owner contributions, reinvested earnings).
• Long-Term Liabilities: Resources for which there is a commitment to return within a period longer than one year.

Current Liabilities

These include debts with a maturity set equal to or less than one year (e.g., callable short-... Continue reading "Financial Accounting Fundamentals: Key Concepts" »

Production Area Management Fundamentals

The production area management is responsible for planning, organizing, and managing the company's production function.

Production Management Principles

Production management is structured around key objectives and determinants:

Management Objectives:

• Defining desired objectives.
• Planning/scheduling.
• Control.

Determinants of Production:

• Productive Capacity: The maximum amount of a product the company can manufacture.
• Product Demand: The quantity of product the market will demand and the company expects to sell.
• Production System Design: The structure and characteristics of the production process.
• Economic Environment: External situations affecting the company (e.g., economic crises).

Strategic Production Planning

Production... Continue reading "Optimizing Production: Management, Planning, Quality, and Sustainability" »

Wage Unit-VI

Wage means the compensation, whatever its denomination or method of calculation, that can be assessed in cash. It is payable by an employer to an employee for services or work already performed or to be performed, in accordance with the contract of employment. It is stipulated freely but may not be less than the minimum set according to the requirements of the law. For work of equal value, of the same nature or not, duration, and effectiveness, equal compensation shall correspond.

• Overtime work will be paid with 50% at least on the agreed salary for the ordinary workday.
• Night work will be paid with 30% of the regular wage set for work by day.
• Overtime at night will be paid a premium of 100% of the regular hourly wage.
• Hours worked

The Public Sector

The public sector integrates the economic activities of a nation within the governmental sphere. Classical economists advocated for economic liberalism and, therefore, were not in favor of state intervention in the economy. Socialist economists, followers of Karl Marx, think that the state has to have a central role in economic life. Keynesian economists, followers of the theories of John Maynard Keynes, are in favor of the state becoming an economic agent.

Principal Functions of the Public Sector

1. Normative Function: Regulating the activity of economic agents through the broadcast of legal norms, laws, decrees, etc.
2. Allocative Function: The state performs this function when it produces or provides goods and services, such as roads,

Factors of Production

673 Why is the demand for factors considered a joint application? Because several factors must be used jointly and in coordination to develop products.

Labor Market

677 Why is labor demand conditioned by labor productivity? A company can only hire an additional worker if the value of the marginal product of labor exceeds its wage; that is, if the value of increased production exceeds its cost.

679 What is the activity rate? The proportion of persons of working age who are either employed or seeking employment.

680 What are the main labor market imperfections?

• a) The bargaining power of unions and employers' associations
• b) The heterogeneity of labor
• c) Lack of market transparency
• d) Labor is not a perfectly mobile factor

Natural

1918, order First World War. Crazy 20 years: phase dexpansio (1919.1929), phase of crisis (1921.1924), phase of valley, valley phase (1929-1939), the properiti (1924-1029) black ans 30: valley phase (1929-1939) / Dawes Plan (1024) New York stock market crash (24-10-1929) outbreak of World War II (1-9-1939). 1depresio expansion crisis indicators as: : fall in production, lowering prices, increasing Datura, internacionalsde slowdown in trade and capital goods, sectoral shocks: only affects a sector producio, textiles, chemicals ... economic crisis affects the whole of a pacer leconomia expansion phase of a valley. overproduction crisis: when there is very Exes doferta but not eaten enough, this makes lower prices. 2-return to normalcy, leconomia

Personal Income Tax (PIT) in Spain

The Personal Income Tax (PIT) in Spain is a direct, progressive, and personal tax levied on the income of individuals. Taxable income is generally categorized into five main types:

• Employment Income: Income derived from work or employment.
• Real Estate Income: Returns generated from real estate properties.
• Investment Income: Income from capital, such as dividends from stocks or other business investments.
• Income from Economic Activities: Earnings from self-employment or business operations.
• Capital Gains and Losses: Profits or losses from the sale of assets.

Assessment Schemes for Business Income

When a taxpayer operates a business, such as an individual employer, the profits from these activities must be included... Continue reading "Spanish Direct Taxes: Personal Income, Corporate, and Economic Activity" »