Enterprise Classification: Sector, Ownership, Size, and Legal Forms
Criteria for Classification of Enterprises
According to the Economic Sector
An integrated economic sector is a group of companies that perform a similar activity.
Primary Sector
Includes companies engaged in activities related to natural resources, such as agriculture, livestock, fisheries, and mining.
Secondary Sector
This sector includes companies that transform natural resources, such as construction and manufacturing. It encompasses companies involved in housing, infrastructure, and processing activities.
Read MoreUnderstanding Non-Current Assets and Depreciation Methods
Non-Current Assets
Non-current assets include transportation equipment, machinery, land, buildings, office equipment, patents, and trademarks.
Requirements for Asset Recognition (IAS 16)
For an asset to be recognized, it must meet the following requirements according to International Accounting Standard (IAS) 16:
- The business is likely to obtain economic benefits from it.
- The cost can be measured reliably.
Determining the Cost of Fixed Assets
To determine the cost of fixed assets, one of three methods
Read MoreUnderstanding Money, Fiscal Policy, and Taxation in the Economy
Understanding Money, Fiscal Policy, and Taxation
Money Aggregates
Money aggregates are variables that quantify the existing money in an economy. They are used by governments and central banks for making decisions and performing economic analysis. Here’s a breakdown:
- M1 (Narrow Money): Includes currency in circulation (banknotes and coins) and overnight deposits. It’s the sum of these two components.
- M2 (Intermediate Money): Encompasses M1, deposits with an agreed maturity of up to two years, and deposits
Economic and Financial Profitability Analysis
Profitability and Financial Metrics
Profitability is a concept that relates the results achieved in a fiscal year with the elements that, directly or indirectly, have led to their derivation. Its determination is given by the following ratio:
Profitability = Profit / Capital Invested
Or more broadly:
Profitability = Profit for the Year / Capital Invested
Multiplying and dividing by net sales for the period under analysis, we obtain the two essential components in the formation of profitability:
Return
Read More1929 Economic Crisis and the Great Depression
The 1929 Economic Crisis and the Great Depression
The Economic Crisis of 1929 and the Great Depression
The main cause of the crash of the New York Stock Exchange was speculation, fueled by the desire to get rich, the economic boom of the 1920s, and the lax regulations of Wall Street. This situation was exacerbated by monetary inflation, a banking structure dependent on rising stock prices, the existence of portfolio companies focused on increasing contributions, and mass psychology.
This system began
Read MoreGlobal Retail Market: Strategies and Logistics
Marketing Channels and Utility
31) In spite of Walmart’s potential to transform India’s [retail market]… E) all of the above
32) Marketing channels exist to create utility for customers… B) price utility.
33) Coca-Cola Company’s global marketing leadership position is based on… A) place utility.
34) Some wine importers insist on shipping their wines [in temperature-controlled containers to protect the product’s integrity]… C) form utility
35) Which of the following most accurately describes the
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