Social & Environmental Responsibility and Legal Framework of Business
Social and Environmental Responsibility
Since the company has a decisive influence in society, it should have certain responsibilities.
Social costs are caused by the private activities of the company but are supported by society as a whole.
Corporate Social Responsibility (CSR) refers to all the legal and ethical commitments that the company takes to care for and improve the impacts of its activities on the social, occupational, and environmental aspects.
Areas of Social Responsibility
These are the
Read MoreUnderstanding Key Financial and Accounting Terms
Depreciation
In economics and accounting, depreciation refers to the allocation of a tangible asset’s cost over its useful life. It represents the reduction in an asset’s value due to wear and tear, obsolescence, or other factors.
Grant
A grant is a non-repayable fund provided by a government entity or other organization to an individual, business, or another entity for a specific purpose. Grants do not require repayment and are often awarded based on merit or need.
Donation
A donation is a gift of money
Read MoreMarket Structures and Economic Indicators
Market Structures
Perfect Competition
Characteristics: Many bidders, no influence on price, clear barriers, homogeneous products, free external intervention, transparent information.
Imperfect Competition
Monopoly
Characteristics: One bidder, significant influence on price, closed barriers, homogeneous product, intervened market, transparent information.
Procedure: Determine market demand, decide production quantity, set price to match demand.
Limits: Legal (patents, franchises), economic (control of factors,
Read MorePrinciples of Marketing and Marketing Strategies
Principles of Marketing
Importance of Technological Change
Marketing activities must consider new technologies because customers have new communication methods. Companies must also adapt to these methods.
Flexibility
Given rapid social and technological changes, companies must adapt to market changes.
Directionality
Marketing actions are expensive and must be profitable.
Long-Term Vision
Gaining customers is difficult, but losing them is easy. Due to high competition, companies must dedicate resources to
Read MoreDepression of 1783-1896, Business Cycles, and the Russian Revolution
Depression of 1783-1896 and Business Cycles
Crisis of 1783
The industrial monopoly of England was broken as other industrialized countries began to compete in the international market. This competition saturated the market and lowered prices of industrial products, reducing profits. Inflationary pressures due to overproduction, transportation needs, and the development of the financial sector were exacerbated. Social conflicts increased and workers organized into unions. Workplace abuses were common,
Read MoreInvestment and Financing Strategies for Businesses
Investment
Definition
Investment is the act of committing resources (time, money, effort) to acquire an asset with the expectation of generating future income or increasing value.
Features of Investment
- Initial Outlay: The amount paid to purchase an asset.
- Length of Investment: The duration of the investment (e.g., number of years).
- Net Cash Flows: The difference between cash inflows and outflows generated by the investment.
- Residual Value: The value of the asset at the end of its useful life.