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

State Intervention in the Economy

State intervention in the economy is justified in two ways:

1. The market mechanism generates a combination unwanted by society.
2. The existence of so-called market failures.

Market failure occurs when the intervention generates the same market imperfections, preventing optimal results. Main market failures:

• Existence of public goods: These goods are characterized because the consumption of one individual does not cause exclusion from the consumption of other individuals.
• Existence of imperfectly competitive markets (monopolies, oligopolies, and monopolistic competition): The fundamental characteristic of this market is the ability of companies to influence the market price. The state tries to make such markets disappear

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,

Understanding Futures Contracts

A futures contract is an obligation to buy or sell an underlying asset at a predetermined price on a specified future date. The benefit for a futures purchaser occurs if the market price of the asset at maturity is higher than the negotiated price. Conversely, the seller's profit occurs when the asset price at maturity is less than the agreed-upon futures price.

Investment Funds: Concept and Structure

Financial Investment Funds (FIFs) are collective investment vehicles where assets are pooled from a group of investors. These funds invest in various financial assets.

Key Components of Investment Funds:

• Management Company

  An administration and management company (often referred to as a Collective Investment Institution

Decoding Marketing Promotions

Key Tax Definitions

Income Earned

Income earned refers to revenue to which an individual or entity has a legal right, regardless of whether it has been physically received or is currently due. It represents a credit to their title.

Income Received

Income received is revenue that has physically entered the assets or estate of an individual or entity.

Minimum Presumed Income

Minimum presumed income is a statutory amount of income attributed to a taxpayer that is not subject to any deductions.

Effective Capital

Effective capital represents the total assets of an entity, excluding values that do not represent actual investments. This includes intangible, nominal, transient, and order accounts.

Partnership Company

A Partnership Company refers to companies... Continue reading "Key Tax Concepts and Second Category Income Explained" »

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

Understanding Annual Accounts and Business Taxation

The Annual Accounts

A company's annual accounts reflect its financial health, encompassing its property, rights, and liabilities. Essentially, they represent the set of assets, rights, and obligations of the company at any given time.

Components of a Company's Financial Position

• Property: All assets owned by the company.
• Rights: Credits extended by the company (e.g., accounts receivable).
• Obligations: Debts that the company maintains (e.g., accounts payable).

The Balance Sheet

The balance sheet is a fundamental accounting document that provides a snapshot of the company's financial position at a specific moment. It comprises three main sections:

• Assets: This section collects the monetary value of

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

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" »