Understanding Income, Economics, and Societal Needs
Functions of Income
- Consumption
- Savings
- Investment
Family, Business, and Status Expenditures
Family: Food, clothing, education, healthcare, employment, housing, entertainment, medicine, services, insurance, appliances, technology, furniture, transportation, etc.
Business: Personnel, machinery, services, technology, capital, security, healthcare, insurance, furniture, buildings.
Status: Personnel, facilities, buildings, technology, furniture, stationery, insurance, machinery, income.
What is Economics?
Read MoreBangladesh: Literacy, National Income, and Fisheries Sector
Literacy in Bangladesh
- The recently published 2011 Bangladesh National Literacy Assessment Survey reported that 38% of Bangladeshi people cannot read or write, over one in three, despite much welcome progress.
- Since 2010, Bangladesh has enrolled over three million children in primary schools through the primary education program.
- This means that about 98% of school-age children attend school — boys and girls.
- There is a stark variation in literacy rates between men and women, between rural and urban
Banking Services: Confirming, Checks, Credit Cards, ATMs
Confirming
Confirming is a service through which a bank manages payments from a client (medium and large companies) to its suppliers. This involves both financial and administrative management.
Benefits for the Supplier
- There is no default risk since the advance appropriation was made by the bank to the supplier <<no recurso>>.
- Elimination of traditional costs of rotation effects, bills of exchange, and commissions.
Advantages for the Bank
- Customer loyalty.
- Possible increase in customer base.
Key Concepts in Production, Marketing, and Business
Key Concepts in Production and Business Operations
Productive Resources and Productivity
Productive capital resources and labor are essential elements in any business operation. Productivity refers to the ratio between the output volume and the volume of productive resources used to obtain it. It essentially links the production function with the resources employed.
Technical efficiency is achieved when full advantage is taken of available resources, maximizing the units produced. Economic efficiency
Read MoreManufacturing Operations: 4 Key Cycles and Processes
All 4 Cycles of Operations in a Manufacturing Company
- The Procurement and Accounts Payable: Operations for the acquisition of goods and services.
- The Production: Activities relating to the transformation of raw materials into finished products.
- The Billing and Accounts Receivable: Commercial operations of the company.
- The Payroll: Expenses related to the staff needed to achieve all activities of the company.
Procurement and Accounts Payable Cycle
Activities of the company with the aim of obtaining the
Read MoreMonetary Policy Impact on Companies, GDP, and Inflation
Companies
Companies are also influenced by the effects of a change in the policy rate on the interest rates in the market. The magnitude of impact depends on the nature of the business, company size, and sources of funding. An increase in the interest rate policy, and its impact on market rates, will have a direct effect on all companies that use bank financing or similar for working capital and investments. Many companies experience a close relationship between liquidity and investment decisions.
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