Key Macroeconomic Concepts and Definitions
Key Macroeconomic Concepts
Externalities: Positive or negative effects on third persons not included in the costs of the company without compensation.
Macroeconomics: The study of the economy as a whole for all economic agents in the country. The CPI, GDP, GNP, aggregate spending, consumption, investment, unemployment are the magnitudes of the variables.
Instruments:
- State/Fiscal Policy: Using the state budget.
- Monetary Policy: The amount used and the price of money (interest rates). Managed by the Spanish
Labor Companies: Structure, Benefits, and Constitution
Labor Companies
For a Sociedad Anónima Laboral (SAL) or Sociedad de Responsabilidad Limitada Laboral (SLL), it is considered necessary that most of its capital, at least 51%, is owned by workers associated with the company under a work contract.
No member may hold shares or units (depending on whether it’s a SAL or SLL) representing over one-third of the capital. The law allows this to increase to 49% if the partner is a public entity.
If partners are not employees, there will be two classes of shares:
Read MoreUnderstanding Microeconomics, Macroeconomics, and Key Economic Indicators
Microeconomics and Macroeconomics
- Microeconomics: Studies and analyzes the behavior of individual economic agents.
- Macroeconomics: Studies and analyzes the performance of the economy as a whole. It analyzes indicators such as GDP (Gross Domestic Product), unemployment rate (EPA), and CPI (Consumer Price Index) to diagnose the economic situation. Macroeconomics establishes relationships between quantities such as production, income, expenditure, and investment. It analyzes the causes and consequences
Essential Procedures for Auditing Assets and Liabilities
General Audit Procedures
Assets
Active Assets: Availability, accounts receivable, inventories, fixed assets.
Liabilities and Shareholders’ Equity
Accounts payable, provision for social benefits, and equity.
Availability (Cash and Bank Balances)
- Require bank reconciliations.
- Review documentary evidence in the cash books.
- Request direct balance confirmations from banks.
- Analyze the source of outstanding check collections and major reconciliations.
- Check the arithmetical accuracy of cash records.
- Verify the correct
Key Economic and Business Terms Defined
Macroeconomics and Microeconomics
Macroeconomics is the study of national and global economies.
Microeconomics is the study of the decisions made by individuals and businesses.
Market Dynamics
- Market Economy: An economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices.
- Market Price: The price at which the quantity demanded is exactly equal to the quantity supplied.
Economic Systems and Policies
- Mixed Economy: An economy that
Understanding Production Functions and Cost Management
7.1 Production Department: The production function of the business includes the entire set of activities that can produce a good or a service. These produce a final product with the use of some raw materials, machinery, and installations. Functions of the Production Department in charge of the productive function of the company:
- Provisioning: Provides the necessary materials for production.
- Manufacturing: Manages the production process from which some production factors achieve a final product.
- Storage: