Key Financial and Market Terms Explained
Key Financial and Market Terms
Corporate Structures and Market Dynamics
Trust: Refers to companies aiming to dominate the market horizontally (by sector) or vertically (when a company tries to control all or part of the production process).
Holding: A financial company that controls others by holding a majority or a significant portion of their shares. The first major holding was INI (National Institute of Industry).
Multinational Enterprise: A company based in one country that establishes manufacturing
Read MoreBusiness Purchasing Process: A Detailed Breakdown
Basic Purchasing Operations
This includes a set of activities to be acquired for the development of the company.
Classes of Goods That Can Be Purchased
- Long-term Assets: Fixed assets
- Goods for Sale: Inventories
- Short-term Assets: Expenses
Real Long- and Short-Term Assets
- Long-term: Represent assets for the company.
- Short-term: They are quickly consumed with use, falling into the category of expenditure.
What is Needed to Make a Purchase?
1. Search Information
We check the stock card to verify the need to purchase
Read MoreEconomic Impact of War: From Inflation to the Great Depression
Economic Consequences of War
Inflation and Debt
Inflation: A rapid increase in prices.
External Debt: The debt of both states. The problem of internal debt was added to this debt, primarily with the U.S.
Gold Standard: An international monetary system in force until the 1930s. It established that the currencies of all countries belonging to this system were exchangeable for a fixed amount of gold.
Economic Turmoil in the 1920s
The Severe Recession of 1920-1921: A typical manifestation of a crisis of conversion
Read MoreEconomic Systems and Concepts: A Comprehensive Overview
Economic Systems Through History
- Barter Economy: A system in which goods and services are directly exchanged for other similar goods and services, regardless of currency.
- Slave Economy: An economy based on the exploitation of slave labor to benefit the ruling class.
- Feudal Economy: Society was divided into nobility, clergy, and peasantry. The first two groups were the owners of the land, which was worked by the third party on behalf of the former.
- Autarky: A system in which a territory intends to be
Second New Deal & WPA: US Economic Recovery 1935-1937
The Second New Deal (1935-1937)
Through intense publicity campaigns, consumers were encouraged to do business with companies that displayed the Blue Eagle as a sign of their cooperation with the NRA.
The U.S. Supreme Court invalidated the NIRA in May 1935, but President Roosevelt went on to introduce new policies to implement the New Deal.
Though public support for Roosevelt remained high as 1934 ended, the Depression had not significantly subsided. First New Deal experiments aimed at relieving major
Read MoreEssential Business Concepts and Their Meanings
Key Business Terms and Definitions
Licensing
Licensing – Authorizing the use, performance, or release of something.
Market Development
Market development – A strategy that entails expanding the potential market through new users or new uses. New users can be defined as new geographic segments, new demographic segments, new institutional segments, or new psychographic segments. Another way is to expand sales through new uses for the product.
Market Penetration
Market penetration – The percentage of a target
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