Business Accounting: Assets, Liabilities, and Financial Statements
**Accounting: Economics**
Accounting is the economic discipline that studies the heritage of a business. Its scientific foundation is based on registering a company’s economic information and standards.
Objective
To provide economic information at different levels and to various types of users in the enterprise and its economic environment:
- Executives: To have sufficient information to make decisions and plan future actions.
- Owners or shareholders: To verify that their interests are well protected.
- Workers:
Strategic Analysis of Tesla Using the SPACE Matrix
The SPACE Matrix is a management tool used to determine a company’s strategic posture. It considers both internal and external factors.
1. Financial Position (FP)
- Market Capitalization: Tesla has one of the highest market capitalizations in the automotive industry, giving it substantial leverage and the ability to attract investments.
- Revenue Growth: Tesla’s revenues have grown significantly year-over-year due to increased EV sales, expanding into energy solutions, and an innovative product lineup.
Economic and Fiscal Policies: Impact on Growth and Stability
Economic Policies
Economic policies are forms of state intervention in the economy to achieve specific economic objectives.
Objectives or Purposes
The most common objectives are:
- Sustainable Economic Growth: The state intervenes to increase the production of goods and services, sustained over time.
- Full Employment: Full employment is considered to exist when 98% of the working population is employed.
- Price Stability: Controlling the prices of goods and services is essential to maintain consumer purchasing
Monetary System Shifts: Oil, Inflation, and Capital Flows
Key Shifts in the Monetary System
a) Abandonment of fixed parities.
b) Definitive disappearance of gold as a monetary reference.
c) Fixing the value of each currency in accordance with the provision of reserves and special drawing rights (SDR) under the value of other currencies.
d) Evaluation of the SDR in accordance with the trading of major currencies, not the dollar as before. And signed the death certificate of Bretton Woods.
Consequences of these Changes
A. Different countries may settle on the
Read MoreEconomic Fluctuations, Consumption, Savings, and Investment
Economic Reality: Fluctuations and Growth Factors
A country’s economic reality: The economy fluctuates from one year to another. These are periods of recession if they are mild, or depression if more severe. In the economic reality of a country, there are some factors that determine its progress or economic growth:
- External shocks to the market: These are situations that affect society, such as war or climatic changes.
- Internal market forces: These are the forces of demand and supply.
- Economic policies:
Monopoly Power, Public Spending, and Market Regulation
Bases of Monopoly Power
The bases of monopoly power are related to why monopolies are born. Knowing the cause that motivated the birth of a monopoly, that same cause is the source, the force that maintains its existence. So, then, knowing the reason for their appearance can determine the basis of its power. The causes for the occurrence of a monopoly are:
A- By the particular conditions of production of a good that make it uneconomical to have more than one manufacturer of a product in the same
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