Understanding Capital, Company Objectives, and Public Sector Divisions

Understanding Capital and Company Objectives

Types of Capital

• Physical Capital: Elements or resources of physical activity used for the production of fixed or circulating assets.
• Human Capital: The level of preparation and training of workers.
• Financial Capital: Economic resources invested in financial assets deposited in the company.

Resource Allocation

Societies must allocate and manage scarce resources that can be used in many ways. Resource selection techniques for production are critical.

Distribution of Resources

Resources are distributed to those who wish to satisfy their needs, to support minimum consumption needs, and to address income disparities.

Company Objectives

• Maximize Profit: Achieve this by increasing revenue and reducing costs.
• Type of Benefit: Consider both economic and social benefits.
• Stabilize and Grow: Maintain customers, improve efficiency, and open new markets.
• Generate Employment and Wealth: Create labor and indirect jobs.
• Respect the Environment: Acknowledge the strong power of influence on the environment and promote a change in societal mentality.

Public Sector Divisions

Production and Financial Companies

• Official Credit Institute: Channels funds from the state and the EU to companies.

Non-Financial Companies

• General Directorate of the Heritage of the State: Seeks the conservation and proper functioning of the state's heritage.
• Shares of the Company State Industrial Holding Company: Aims to improve financial management and economic efficiency, revitalize industrial policy, encourage industry competitiveness, and facilitate profitable privatization.

Public Administration

• Central Administration: Located in Madrid, includes parliamentary chambers, the government, ministers, the supreme constitutional court, Audiencia Nacional, and the Bank of Spain.
• Peripheral Administration of the State: Directly dependent on the state.
• Territorial Administrations: Distributed to all autonomous communities, including regional institutions (parliament, council dues), provincial councils, and local authorities or councils.
• Social Security Administration: Provides hospital services, health administration (medicine, doctors, and medicines), and social security benefits (disability, pension, retirement, etc.).