Accounting and Finance Key Concepts Review
Accounting and Finance Key Concepts
- Sole Proprietorship
- 110,000
- The individual assets invested by a partner in a partnership are jointly owned by all partners.
- Which of the following is not a characteristic of a partnership? Double taxation
- 49,200
- Which of the following statements is correct? The balance sheet of a partnership will show two or more capital accounts.
- Number of shares issued are 60,000.
- Vickers Company issues 4,000 shares of $5 par value common stock for $140,000. Paid-in Capital in Excess
Economics: Principles, Concepts, and Applications
Economics Summary
Week 1: Introduction to Economics
According to Michael Mandel, economics is the study of how individuals, businesses, and governments make decisions and tradeoffs in the face of scarce resources.
Today, the economy occupies significant space in newspapers and news, often making headlines due to the continuing crises that several countries experience. Companies that produce outputs (goods and services) have existed since ancient times.
The first economist, Adam Smith (considered the
Read MoreMarketing Promotion and Distribution Strategies
Marketing Promotion and Distribution
Promotion: The use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship, and public relations to inform consumers and persuade them to buy.
Promotion Mix
The promotion mix includes various strategies:
Advertising
- Persuasive Advertising: Tries to entice the customer to buy the product by informing them of the product’s benefits.
- Informative Advertising: Provides the customer with information. Mostly done by the government.
- Advertising
Supply and Demand: Basic Economic Concepts
Supply
Definitions:
- The amount of goods or services that producers are willing to offer at different prices and conditions at a certain time.
- The amount of products and services available for consumption.
Elasticity:
Elasticity is expressed graphically by means of the supply curve. The slope of this curve determines how the supply increases or decreases with a decrease or increase in the price of the property. This is the elasticity of the supply curve (Eo = Inc.Q / Q : Inc.P / P).
Direct Contact:
The
Read MoreStrategic Pricing Methods and Considerations
Topic 6: Pricing Strategies
Price is the sum of all values that customers give up to gain the benefits of having or using a product or service. Price is directly related to value; customers are willing to pay higher prices for products that provide higher value.
Methods for Setting Prices
In the economic world, we have several methods to set prices:
- Based on Costs
- Markup Pricing
Price = Total Unit Cost + Markup
This involves calculating the price by first determining the cost of producing one unit of product
- Markup Pricing
Understanding Economics: Principles and Processes
Item 1: Understanding Basic Economic Concepts
Positive Economy: Describes and studies reality as individual and collective behavior.
Economic Rules: Should be the economy that sets the rules.
The Factors of Production
- Land (or Nature Factor): Provides us with resources. Land is durable and can be exploited.
- Labor: The most productive factor, requiring human intervention. It involves physical and mental effort.
- Capital: Financial. Two types:
- Funds the company has for its employees or investments.
- Capital