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
Understanding Management: Organizations, Resources, and Systems
Understanding Management
Why Study Management?
Management plays a crucial role in today’s society.
- For those aspiring to administrative or managerial positions, management provides the knowledge to be more effective.
- For those not in administrative roles, it offers insight into how organizations function and how leaders behave.
The Concept of Organization
What is an Organization?
An organization is a systematic agreement between people to achieve a specific purpose, such as colleges, universities, churches,
Read MoreOrganizational Buying Process: Stages and Factors
What Constitutes the Buying Process Within an Organization?
The procurement process within an organization involves specifying its requirements for goods and services, comparing vendors, negotiating with them to agree on terms, holding contracts, and placing orders.
What Affects a Good Purchase?
Good purchasing management affects the quality and safety of service to customers, the cost of materials, and the funding the company gets from its providers as a result of postponing the payment of supplies.
Read MoreSpain’s Railway Construction: A Historiographical Analysis
Railway Construction in Spain: A Historical Analysis
This text presents a historiographical analysis, interpreting the reasons behind the appropriateness of analyzed events. The author, Gabriel Tortella, focuses on railway construction in Spain, critiquing the economic and political characteristics of its development and their contribution to Spain’s economic progress.
Following the European reformist line of Enlightened Despotism, several factors hindered progress, including the impact of the War
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