Understanding Ledgers, Fintech, and Bitcoin
Understanding Ledgers in Accounting
Ledgers are the primary records where a company’s financial accounts are documented.
- Principal Recordings of Accounts
Economic Activity: Records all transactions affecting the company’s financial position, such as revenues, expenses, investments, and debts.
Financial Relationships: Maintains details on financial obligations, including receivables, payables, and liabilities.
Types of Ledgers
- Based on Recording Approach:
Transaction: Records specific movements such as
Read MoreBusiness Finance: Funding, Investment, and Leasing
Understanding Corporate Finance and Investment
Own Means of Financing
Own means of financing refers to the financial resources owned by the company. These resources include:
- Capital: Provided by partners or owners of the company.
- Reserves: Profits retained by the company and not distributed, used to cover financial needs.
When a company reinvests profits into itself, it is engaging in self-financing.
External Means of Financing
External means of financing are the set of external resources that generate
Read MoreEU Social Policy: Treaties & Evolution
Treaty of Rome (1957)
It aimed to harmonize the social legislation so that a country’s industries would not be discriminated against compared to others by the application of different labor standards.
Evolutionary History
- 1951-1957: Establishment of the ECSC.
- 1957-1968: Establishment of the EEC.
- 1969-1972: Boom and expansion of social policy. Initiation of a European economic and monetary system (ECU), creation of the Standing Committee on Jobs, and the Summit in Paris (1972).
- 1973-1978: Influence of
Understanding Cash Flow, Productivity, and Business Objectives
The cash flows are the benefits obtained by the company, not to divide among the partners, and are used to cover your financial needs. Example of an advantage that can be pointed out: it allows greater autonomy and financial independence.
Market Structures: Monopoly and Oligopoly
1. In the case of a monopoly, it is a single company that supplies the entire market for a good or service which has no substitute, so that the monopolist can freely determine their conditions. First, in an oligopoly, a few
Read MoreZara’s Strategic Analysis: Financials, Competition, and Market Entry
Zara’s Financial Position
Economic Value Added (EVA): Zara’s EVA is 12%, higher than the industry average of 8.5%, which means it’s generating value beyond its cost of capital. This strong EVA score indicates Zara’s efficient operations and its ability to add value, which is a significant strength. Score: 4.5 (above industry average, showing financial efficiency).
Debt-to-Equity (D/E): Zara’s D/E ratio is 25%, much lower than the industry average of 40%. A low D/E ratio shows Zara’s reliance
Read MoreUnderstanding Entrepreneurship: Types, Traits, and Frameworks
Understanding Entrepreneurship
Definition: Any action, activity, or function associated with an opportunity and the creation of an organization to pursue it.
Entrepreneurial Framework
Culture & norms, financial resources, government policies, R&D transformation, human resources, training and education, physical resources, internal market openness, commercial & legal aspects.
The Entrepreneurial Iceberg
Skills: Ability to do something well. Knowledge: Information a person uses (communication,
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