Business Operations: Production, Costs, and Inventory Management
The Production Process
The production process involves applying a technological process to transform production factors into finished products. Factors constitute production inputs, and outputs are finished products.
Average Maturation Period
This consists of a process in which production factors are acquired and can be inventoried. They are stored to join the transformation process. The finished products are stored before sale and shipment. The average maturation period elapses from when a monetary
Read MorePersonal Finance: Interest, Insurance, Investments, and Retirement
Simple Interest
Interest on a loan or investment is computed as a percentage of the loan or investment amount, or principal.
Ex. Farah invests $1,000 in a GIC that pays 3 percent simple interest each year. At the end of year one, the bank will credit Farah’s chequing account with $30. I=P x r x t —- $30=$1000´0.03´1
Compound Interest
Farah decides to invest her money into a GIC that pays 3 percent interest compounded annually.
Interest earned will be re-invested back into the GIC and not to her
Read MoreStrategic Patent Management and Intellectual Property Rights
Strategic Patent Management and Intellectual Property Rights
Extracting Value from Intellectual Property Rights
In addition to being used directly by a firm, a patent can be:
- Sold: The assignee sells all of their rights to a third party.
- Licensed out: The assignee holds the ownership and sells the right to use the invention under certain conditions for a limited time.
Understanding License Agreements
A license agreement can be very complex and generally includes:
- Extent of the rights of use: Duration,
Externalities, Public Goods, and Market Structures
Chapter 10: Externalities
Definition
1. Externality:
When an individual/firm’s activity affects the well-being of a bystander, but no compensation/remuneration is made/collected.
– Negative Externality: Adversely affects bystanders (e.g., pollution).
– Positive Externality: Positively influences bystanders (e.g., education).
2. Market Outcomes:
Social cost = Private cost + External cost
– Negative externalities: Social cost > private cost.
To maximize total surplus, self-interested sellers and buyers
Read MoreUnderstanding Financial Markets, Intermediaries, and Corporate Finance
Financial Markets: An Overview
Financial markets are a fundamental part of the financial environment. They are the place or mechanism by which financial assets are exchanged. The objective is the efficient allocation of savings to end users in the economy. Properties:
- Amplitude (range of assets that are traded)
- Transparency (availability and symmetry of information)
- Freedom (accessibility for buyers and sellers and non-interference, public or private)
- Depth (volume of trading in each asset)
- Flexibility
Argentina in the 1930s: Politics, Economy, and the Roca-Runciman Pact
New Political Actors in 1930s Argentina
New political actors emerged in the 1930s, including the Armed Forces and the Catholic Church. The Constitution defined the Armed Forces’ role as defending the country from foreign aggression and supporting elected officials. However, in the 1930s, they controlled operations, appointments, and promotions. This sector believed democracy had led to anarchy and a crisis of national values, viewing the army as an institution to restore order. The Church saw military
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