Business Formation and Management: Key Concepts
Company Concept
An organization formed by people whose actions are coordinated and implemented harmoniously, utilizing materials, tools, machinery, money, or any other factor in order to achieve a pre-defined objective.
- Comes from the word “undertake”
- Start something
- Begin a series of activities aimed at a specific and predetermined goal.
Company Classification
- a) Extractive
- b) Manufacturing
- c) Commercial
- d) Industrial
- e) Services
Small Enterprise
- a) Slow growth.
- b) Staff: The manager can instruct on production,
Medium and Long-Term External Financing Options for Businesses
Medium and Long-Term External Financing
A) Loans to Medium and Long Term
The most common forms of debt to medium and long term are bank loans and debentures.
B) Bonds
Loans are divided into many aliquots that are called debentures, bonds, etc. These are receivable in multiple installments by creditors. Large companies sometimes need huge funds, and it is not easy to find financial institutions willing to provide them. Therefore, they could raise funds by dividing these amounts into more titles for small
Read MoreOperations Management: Production Methods and Sustainability
Operations management involves acquiring the necessary resources needed for production in the most efficient and cost-effective way. It intersects with several key business functions:
- Marketing function: Physical goods are produced based on market research to meet the needs and wants of customers.
- Finance function: Costs of different production methods are analyzed. Funding is needed for all aspects of operations management.
- Human resources function: Production workers need to be hired and trained
Understanding SPDRs, Market Mechanics, and Financial Regulations
Understanding SPDRs and Market Transactions
Standard & Poor’s Depositary Receipts (SPDRs) track the S&P 500. SPDRs are traded in the secondary market as a pooled investment.
Fordist vs. Post-Fordist Production: A Comparative Analysis
Fordist Production
In the early twentieth century, engineering industries, especially automotive, protruded in the core countries. These industries reached an important development from a production model called “Fordist”. The Model T was so successful that the decision was made to increase production. This ideology is a system to produce more cars in less time. The assembly line or production line was implemented, where workers assembled pieces that were carried on a moving tape, hence the name
Read MoreBusiness Funding and Financial Cycles: A Comprehensive Analysis
Sources of Funding
Funding means the liquid resources and financing available to a company to meet its cash needs.
Rating
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According to the repayment period:
- Short-term funding sources (less than 1 year)
- Long-term funding sources (more than 1 year)
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According to whether they have an external or internal origin:
- Internal funding: Undistributed profits
- External funding: Social capital
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According to whether the means of financing belong to company owners or outsiders:
- Own financial resources: Capital and