Company Functions: Purchasing, Procurement, and Supply Chain
The Company: An Economic Unit
A company is an economic unit created to generate profit through business activities. Companies can be classified into:
- Extractive Companies (Primary Sector): Extract raw materials (e.g., fishing).
- Industrial Enterprises (Secondary Sector): Transform raw materials into finished products (e.g., furniture).
- Service Companies (Tertiary Sector): Provide goods and services from the primary and secondary sectors to consumers (e.g., transportation).
Functions of a Company
The functions
Read MoreEssential Business & Marketing Terms: A Comprehensive Glossary
Essential Business & Marketing Terms
After-Sales Service: Service that continues after the sale of a product (e.g., maintenance).
Agent: Person or company that acts for another and provides a specified service.
B2B E-commerce: Business-to-business e-commerce: use of commercial networks, online product catalogs, and other online resources to obtain better prices and reach new customers.
B2C E-commerce: Business-to-consumer e-commerce: online sale of goods and services directly to consumers.
Benchmarking:
Read MoreJob Interview Preparation: Key Questions and Answers
1. What is a job interview?
Job interviews are meetings between an interviewer and a candidate for a job position. The interviewer assesses whether or not to incorporate the candidate into the company’s payroll.
2. In a job interview, what is important to convey?
Reliability, strength, confidence, and security are important qualities to convey.
3. List six techniques that are valued positively in a job interview:
- Attending the meeting on time.
- Taking care of your appearance.
- Avoiding overly familiar conversation
Equity vs Debt Financing: Sources, Product Life Cycle & More
Equity Financing
Equity financing represents the owner’s share of a company’s assets. In a corporation, this is represented by shares of common or preferred stock, depending on the legal form of ownership. Equity financing in a corporation is evidenced by shares of either common or preferred stock.
Role of Equity Financing
Equity financing serves as a buffer, protecting creditors from loss in case of financial difficulty.
Debt Financing
Debt financing comes from lenders who are repaid at a specified
Read MoreEvolution of Industrial Policy: Horizontal Policies, Liberalization, and Reforms
The Rise of Horizontal Policies (Clusters and Innovation Systems)
Horizontal policies are general and benefit many branches and companies. For example, clusters and innovation systems are often used.
Michael Porter’s influential work on this topic is (1990): The Competitive Advantage of Nations.
They identified a new “network paradigm” in which the spatial dimension of inter-firm networking was of key importance.
The EU supports regions applying cluster policies through its Smart Specialization
Read MoreUnderstanding Income Tax and Financial Systems
Income Tax
Income tax is a direct tax levied on income obtained from citizens. Income tax brings the state more than a third of what is collected. It seeks the implementation of the principles of economic progressivity and fairness.
Statements of Income Tax
- To calculate income tax, we must add all income earned by the taxpayer during the year.
- From the proceeds, we must subtract the costs necessary for their production, such as social security contributions. There is also a tax-free allowance or amount