Business Finance and Strategic Management Principles
Financial Function and Investment
The financial function manages and controls financial resources. Key questions include: total source volume, optimal financial structure, and necessary investment types for productive activities.
Investment Selection Methods
Net Present Value (NPV): Updates cash flows with a rate, selecting the highest positive value.
Payback Period: Considers updating cash flow, focusing on recovery time.
Static Methods: Consider lifetime investment.
Net Cash Flow: Represents the difference
Read MoreAccounting Information: Costs, Production & More
Users of Accounting Information:
External Users: People outside the company, not responsible for its management, who have a legitimate interest in its performance. Examples include investors, employees, and lenders. This involves global financial information, showing aggregate financial assets and results.
Internal Users: Responsible for the company’s daily management. Accounting provides information to track progress and guide decisions. This involves specific, internal information for executives
Read MoreCorporate Social Responsibility: A Path to Profitability
Corporate Social Responsibility: A Path to Profitability
Introduction
Indifference to growing problems affecting humanity—pollution, violence, social disorder, loss of principles and values, increased depression, and de-legitimization of established order—will lead to global catastrophe. Businesses, professionals, the state, and educational institutions must assume leadership roles to combat these issues. It’s time to rethink corporate social responsibility (CSR) in all its dimensions; failure
Read MorePost-Keynesian Economics: Kalecki, Kaldor, Minsky, Eichner, and Steindl
Kalecki: Investment and Profit
How are prices determined?
Prices are based on cost and profit margin.
How is investment financed, and what factors determine it?
Investment is financed by internal funds (retained earnings and depreciation) and external funds. Determinants of investment include:
- Internal funds
- Profit mass
- Capital stock
How is the rate of profit determined?
Large companies have greater access to lower-cost financing, leading to higher earnings and increased internal funds. This creates a disparity
Read MoreCompany Structures: Types and Organizational Models
Company Structures: Types and Organizational Models
Company
The number of partners for its formation is one or more; a single-partner company is called a one-person company. Liability is limited to the capital. A minimum of €60,101.21 is needed, with at least 25% subscribed or paid at incorporation. The company name is followed by “Company” or “SA”. It’s taxed on income tax, has legal personality, and requires a public deed before a notary and registration in the commercial register. Constituent
Read MoreProject Social Assessment: Measuring Economic Impact
Project Social Assessment
Social assessment of projects measures the real contribution of projects to a country’s economic growth. Decision-makers must consider this information to program investments for maximum impact on national output. However, social assessment cannot measure all project costs and benefits; the final decision also depends on economic, political, and social factors.
Some projects with high social returns may generate unmeasurable benefits, such as beauty, and should be carried
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