Understanding Global Inequality and Underdevelopment
Inequality and Development
The most significant market failure impacting individuals is the increasing income inequality and persistent poverty. The State supports mechanisms to redistribute wealth and income within the country, such as establishing a progressive tax structure and a welfare state that provides certain services and goods for free to the majority of the population.
Global Inequalities
Inequalities exist within a state, which in most countries of the world have increased over recent years.
Read MoreBusiness Plan Essentials: Key Concepts and Strategies
Business Plan Essentials
Executive Summary
A concise summary of the business plan, highlighting the main results on a single sheet.
Problem Definition and Alternatives
This section identifies the problem and its underlying reasons, while also explaining the weaknesses of existing alternatives.
New Business Idea Presentation
Market context, strengths, new components, etc. This section outlines major trends that suggest the new idea has potential.
Sector Analysis
Analysis of the industry structure, including
Read MoreEntrepreneurship: Key Concepts, Challenges, and Advantages
Entrepreneurship: An Overview
How would you describe entrepreneurship? Entrepreneurship is accepting the risk of starting and running a business. It encompasses the capacity and willingness to develop, organize, and manage a business, bearing its inherent risks, to generate a profit.
From an economic perspective, entrepreneurs utilize labor, land, and capital. They combine resources, labor, materials, and other assets in ways that increase their value. They also introduce changes, innovations, and
Read MoreProduct Levels, Decisions, and Development Process
Three Levels of a Product
Products can be categorized into three levels:
- Core Customer Value: The fundamental need or want that the customer satisfies.
- Actual Product: This includes the brand name, quality level, packaging, features, and design.
- Augmented Product: Additional services and benefits, such as delivery, after-sales support, and warranty.
Consumer vs. Industrial Products
Consumer Products
- Convenience
- Shopping (or Durable Goods)
- Specialty
- Unsought
Industrial Products
- Materials and Parts
- Capital Items
- Supplies
Fordism: Rise, Fall, Impact, and Legacy
The Fall of Fordism
- The uniformity of the wage rate (eliminating bonus pay) and repetitive detail operations led to the abandonment of the Ford model.
- Increased unionization of workers, particularly around the Industrial Workers of the World (IWW).
The Solution: Reduced Working Hours
The reduction of working hours from 9 to 8 hours, surprisingly, increased production levels at an accelerated pace. The “high wage” became a necessity for the new process of accumulation. It was believed that later generations
Read MoreCompany Accounts, Insolvency, and Financing
The Account
The account represents the evolution and situation of the assets and liabilities, and the income and expenditure of a company. The splits in debit and credit, and the difference between them, is the account balance.
Accounting Books
Employers are required to keep proper accounts that allow for tracing all chronological operations. Employers must keep a book of inventories and annual accounts, and a ledger book. The ledger is a major book that companies must keep. Companies are not required
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