Business Objectives and Stakeholder Roles in a Company
Setting SMART Business Objectives
Objectives should be SMART: Specific, Measurable, Achievable, Realistic, and Time-Specific.
Understanding Corporate Aims
Corporate aims are very long-term goals, the core of business activity is expressed here. Benefits include:
- Serving as a starting point for the entire set of objectives
- Developing a sense of purpose and direction
- Allowing an assessment to be made
Mission Statements
A mission statement is an attempt to condense the central purpose of a business’s existence
Read MoreKey Concepts in Money, Banking, and Financial Systems
Money
Money is a generally accepted medium of exchange that serves as the unit of account and a store of value.
Money Supply
The money supply is the amount of money circulating in an economy and is defined as the sum of currency held by the public and bank deposits.
Demand for Money
Demand for money refers to the amount of notes and coins (legal tender money) that economic agents wish to hold.
Legal Cash Ratio
The legal cash ratio is the percentage of lawful money, imposed by the central bank, kept inactive
Read MoreKey Principles of Economics: Understanding Decision-Making, Trade, and Market Dynamics
CHAPTER 1: Ten Principles of Economics
Ninth Edition
In this Chapter
- What kinds of questions does economics address?
- What are the principles of how people make decisions?
- What are the principles of how people interact?
- What are the principles of how the economy as a whole works?
Ten Principles of Economics
Resources are scarce
- Scarcity: The limited nature of society’s resources
- Society has limited resources and cannot produce all the goods and services people wish to have.
- Economics
- The study of how society
Fair Trade: Impact on Global Poverty and Consumer Behavior
Fair Trade: Impact on Global Poverty
Fair trade: The way in which Western countries trade with poorer nations affects their standard of living and, in many cases, keeps people in poverty. If we changed the rules of trade to be fair, we could improve the lives of millions of people.
Fair Trade is an organized social movement and a market-based approach to helping producers in developing countries earn a fair amount of money for their work. It also tries to support sustainability.
Fair Trade History
Read MoreKeynesian Economics, New Deal, and Post-War Economic Concepts
Keynesian Proposal
Keynes’ diagnosis of the 1929 crisis identified the main problem as a lack of demand leading to the economic collapse of investment. Faced with the decline of private investment, he proposed that the state should increase public spending, mainly on public works. The deficit generated if state spending increased would be offset because this initial expenditure would create new demand (the Keynesian multiplier). Thus, to increase total production, the state could increase taxes on
Read MoreKey Concepts in Economics: From Principles to Market Dynamics
Positive and Normative Economics
Positive Economics
Deals with describing, explaining, or predicting economic phenomena. It is objective and fact-based, where statements can be tested and validated.
Normative Economics
Concerns what ought to be in the economy. It is subjective and value-based, often involving policy prescriptions and opinions.
Definition of Economics
Paul Samuelson
Defined economics as the study of how societies use scarce resources to produce valuable commodities and distribute them among