Accounting Principles and Practices
Objectivity
Changes in assets, liabilities, and equity are to be booked as soon as possible to objectively measure these changes.
Prudential Criteria
The measurement of resources and accounting obligations requires incorporating estimates to distribute costs, expenses, and revenues over relatively short periods and between different activities. Preparing financial statements requires a prudent approach when selecting the basis for decisions. This involves choosing the most conservative option among
Read MoreThe Dynamics of SMEs and Multinational Enterprises
T-9: General Characteristics of SMEs
Nature of SMEs
SMEs (Small and Medium-sized Enterprises) represent 95% of businesses. They are primarily small and medium-sized, holding significant social importance. Key characteristics include:
- Market imperfections influence them due to their small size.
- Capital belongs to one or a few individuals, making decisions autonomous and influencing character and function.
This structure impacts development:
- Few owners facilitate homogenous decision-making.
- Proximity between
Investment and Financing Plan for Startups
Investment Plan
Estimating Investment Needs
Entrepreneurs must estimate the initial investment required and assess its potential offset by future income. A comprehensive investment plan details all resources necessary for operations, outlining the allocation of funds. It differentiates between investments in non-current and current assets.
Non-Current Assets
These assets and rights, vital to the production process, remain within the company for over a year.
Intangible Assets
These are non-physical assets
Read MoreSmall Business Management: Challenges, Strategies, and Growth
Small Business Management
Driving Forces and Challenges
Driving Forces
- Expanding Markets: Extending product life cycles and finding buyers for specialized products.
- Cutting Costs: Reducing labor and transportation costs, and obtaining tariff reductions.
- Accessing Resources: Finding raw materials and human resources.
- Capitalizing on Location: Profiting from unique local features and following large client firms abroad.
Challenges
- Political Risk: Addressing this by avoiding high-risk countries or using insurance.
The Service Sector: Composition, Development, and Trends in Spain
The Service Sector Composition
Services encompass diverse activities such as transport, telecommunications, commerce, hospitality, health, education, financial services, business services, and public administration. Several classifications of services exist, grouped by key features:
Classifications of Services
- Market services and services not intended for sale: Provided by the market or the public sector, free or unrelated to production costs.
- Intermediate and final services: Used as intermediate consumption
Production Planning and Inventory Management
Decisions of the Direction of Operations, Planning, and Production Control: The management of the production department is responsible for managing the production system to increase the value of goods and services. This is done by making a series of decisions, which can be divided into two groups: long-term strategic decisions and short-term tactical decisions.
Hierarchical Levels in Company Planning
Strategic Planning (Long-Term, Over 1 Year)
At this level, objectives are determined; it determines
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