Organization of Enterprises: Evolution, Principles, and Structures
Organization of Enterprises
1. Organization and its Evolution
Middle Ages
Feudalism established a self-sufficient organizational regime. Guilds of merchants and craftsmen were created for the exercise of their activities. Apprentices were under the direction of officers and masters. They acquired skills in a trade, becoming officials and then, after performing a “masterpiece,” masters.
Industrial Revolution
The advance of technology awakened the desire for maximum performance with minimal effort. This
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Company
A company is an economic unit that combines factors of production (land, labor, capital) to obtain goods and services offered to consumers for profit.
Value Creation
Value creation is the transformation of inputs into outputs, generating business value in the final product or service and creating shareholder value.
Business Structures
Sole Trader
An individual with legal capacity who exercises a business independently, operating under a special Social Security regime.
Mercantile Society
A contract
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Item 6: Application of Bank Funds
Asset Management
Bank liabilities, the source of funds, are invested in various assets. These assets include loans granted to customers. Banks aim to ensure repayment and assess customer solvency.
Factors Influencing Asset Operations
Security Operation
Banks require security to ensure loan repayment with interest. A high volume of bad debts can lead to bankruptcy. Material and personal guarantees help recover awarded funds.
Transaction Term
Banks consider the correlation
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Economic Reality of a Country
External Market Perturbations
Government Economic Policies
Internal Market Forces
The economic behavior of a country is expressed through the free play of supply and demand, reflected in the aggregate supply and demand curves. These curves represent the combined supply and demand of all economic agents (domestic and foreign) operating within the country.
Supply and demand interact and influence three critical economic variables: production, prices, and employment.
Average
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Unit 1: The Spanish Financial System
The Role of the Financial System
The fundamental objective of any market is the exchange of goods and services. Without money, this exchange is done through bartering. The Financial System facilitates contact between those with surplus money (savers) and those who need it (borrowers), enabling the channeling of funds.
2. Concept, Functions, and Composition
2.1. Concept
The Financial System encompasses the institutions, media, and markets that channel savings from
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Equity
Fairness
The fairness between competing interests must be a constant concern in accounting. Users of financial data may find that their interests are in conflict. Therefore, financial statements should be prepared to fairly reflect the various interests at stake in a farm or business.
Body
Entity Concept
Financial statements always refer to an entity where the owner is considered a third party. The concept of “entity” is different from “person” as one person can produce financial statements for
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