Economic Policies: Objectives, Types, and Instruments
Economic Policies
Economic policies are the ways that the state is involved in a state’s economy to achieve specific goals.
Objectives
- Sustainable economic growth: The state intervenes to support increased production of goods and services over time.
- Full employment: Among rational economic decisions, it makes no sense to leave resources unused, which is applicable to the human factor.
- Price stability: Controlling prices of goods and services is essential for consumers to maintain purchasing power and
Commercial Function and Market Analysis: A Comprehensive Guide
The Commercial Function
Meeting Consumer Needs and Demands
The commercial function of a company is responsible for product supply in the market. Its basic mission is to meet the needs and demands of consumers. This function carries a significant responsibility, as its effectiveness impacts not only profits and company survival but also the fulfillment of social needs.
Commercial Effectiveness
- Sales Volume: The amount a company sells in a given period, usually expressed in monetary value and quantity.
The Financial System: Structure, Intermediaries, and Markets
The Financial System
The financial system’s structure is composed of a series of intermediaries regulated by government agencies. Savings are channeled towards financing private consumption (families), business investment, and public spending.
Financial Assets
Financial assets (or financial instruments) are securities that represent a product or wealth for those who own them (an asset) and an obligation (a liability) for those who owe them.
Key Characteristics of Financial Assets
- Liquidity: Measures
The 2008 Financial Crisis: Where Did All the Money Go?
A Story of Liquidity and Fear
On September 12, 2001, just hours after the devastating 9/11 attacks, the CEO of a major Spanish financial institution made an early morning call to his treasury secretary. The treasurer was on vacation, and his deputy, despite her long tenure, had never received a call from the CEO. He asked a simple question: “How is our liquidity?” Her response was reassuring: “We’ve never been so liquid all year.” (A statement, it should be added, that was purely coincidental.
Read MoreUnderstanding the Business Environment and Company Organization
Topic 1: The Company and Its Environment
Concept and Scope of the Company
The Core Elements
- The Idea: Meeting individual needs for mutual benefit.
- The Entrepreneur: A skilled individual or group capable of launching and developing a business opportunity.
- Resources: Human and material resources needed for profitable development.
Company Concept
A company organizes resources and combines means of production to deliver goods and services that meet public needs, aiming to achieve predefined objectives. Economic
Read MoreUnderstanding Company Assets, Liabilities, and Equity
Mass Property
Definition
Assets represent a homogeneous set of available resources and liabilities with the same economic or financial significance. These are classified based on liquidity (ability to be converted into money), from low to high. Liabilities are categorized by enforceability, with more enforceable debts being those that mature earlier.
A. Assets
Assets encompass all property and rights owned by the company to generate future economic benefits. They are classified as either non-current
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