Key Business Concepts: Production, Contracts, Finance
Classified in Economy
Written at on 
English with a size of 3.89 KB.
Key Business Concepts
Production Process: The organized, logical steps workshops must follow to achieve the desired product.
Employment Contract: An agreement between a worker and a company where the worker commits to work under the employer's direction in exchange for wages.
Collective Agreement: A contract negotiated and formalized by employer and employee representatives to regulate working conditions for a specific period.
Warehouse Management (Stock Security): Maintaining a reserve amount in storage to cover potential damages or shortages.
Investment Spending: An entrepreneur's expenditure on goods that aid in producing other goods. These assets, such as machinery or tools, typically last more than a year. (Examples: location, machinery, tools, vehicles, facilities, furniture, company formation costs, all contributing to the total investment).
Sources of Funding: Options for companies to obtain capital include: private equity (investments in companies with high potential, offering profit participation), loans (funds from credit institutions like banks, often requiring guarantees, possibly supported by SME mutual guarantee societies), supplier financing, and subsidies/grants.
Renting: A customer, such as a self-employed individual or small employer, pays monthly installments for the use of a vehicle.
Leasing: A long-term hiring arrangement that doesn't automatically include a purchase option at the end of the contract. The customer prioritizes functionality over ownership.
| Leasing | Renting |
|---|---|
| Can involve both movable and immovable property | Typically involves only movable property |
| The lessee is responsible for asset maintenance | The lessor is responsible for asset maintenance |
| Minimum lease length: 2 years for movable property, 10 years for immovable property | No minimum length |
| Certain limits apply to reducing its proportion | The fee is fully deductible |
Other Financing Sources: Confirmation (paying suppliers on time, even without immediate funds), credit account, bank overdraft.
Temporary Treasury Deficit: A situation where a company currently lacks sufficient cash.
| Loan | Credit |
|---|---|
| Receive the entire loan amount from day one | Funds are available, but the client may not use them all |
| Interest is paid from day one on the total amount over the year | Interest is paid only on the amount used and for the duration it's used |
| Early repayment may incur a penalty | Repayments can be arranged at any time without penalty |
Discount Shopping: Deducting money for accepting bills of exchange.
Commercial Discount: Receiving advance payment on a bill of exchange, subject to a commission paid to the bank.
Investment Plan: Details the investments required to manufacture a product or provide a service, including machinery, tools, installations, premises, land, etc.
Expense Plan: Details the necessary expenses for obtaining or providing a product or service, such as raw materials, wages, social security, etc.
Financial Plan: Determines the economic viability of an idea or project, including profit and loss statements, treasury accounts, and the bottom line.