Financial & Investment Areas: Sources, Costs & Characteristics
ITEM 9: FINANCIAL AND INVESTMENT AREA
1. Sources of Financing for the Company
Means of funding sources or means liquid resources are available to pay the company to meet its cash needs. The company’s financial resources can be classified according to three different criteria:
Classification According to the Repayment of the Funding Source:
- Sources of short-term financing: When the repayment period is less than a year. E.g., supplier credit, bank loans, etc.
- Sources of long-term financing: When the repayment
Economic and Financial Analysis of a Company
1. Economic Analysis of the Company
The analysis of the income statement allows us to understand the company’s ability to generate profit and the factors affecting profitability.
Benefits and Profitability
Figures for the company’s profit within a given time are absolute. They provide valuable information and acquire a more precise meaning when compared to other magnitudes.
The profitability ratio is obtained by the ratio between profits and capital invested over time. Profitability is an indicator
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Human Resources Management
Item 4: Human Resources Management Process
Human resources management is the process by which a company’s human resources system components are aligned with its organizational structure, strategies, and objectives.
Functions and Objectives of the Human Resources Department
The human resources department performs several key functions:
- Organize and Plan: Design the organizational structure, define job roles, and establish responsibilities.
- Recruit: Select suitable candidates
Business Concepts, Functions, and Objectives: A Comprehensive Guide
Business Concepts, Functions, and Objectives
Definition
From an economic perspective, a company is a unit of production of goods and services.
Common Elements
- Objectives: Every company seeks to achieve a specific goal.
- Production Factors: Companies utilize human and material resources to obtain goods and services.
- Organization: Companies organize these factors to achieve their objectives.
- Risk-Taking: Companies take risks due to the uncertainty of final results.
- Value Creation: Companies create or increase
Decision-Making and Control in Management
Decision Making
The process by which a choice is made among alternatives to solve different life situations. These situations can occur in various contexts: work, family, relationships, business, etc. Decisions are made constantly, the difference lies in the process used to reach them.
Stages of Decision Making
First Stage: Recognizing the Need
The decision-making process begins when a person faces a new situation involving threats (e.g., surgery) or opportunities (e.g., relocating). A decision-making
Read MoreModes of Production Throughout History
Primitive Society
The earliest form of human organization was the primitive community. Using crude tools of stone, wood, horn, and bone, they gradually developed new tools like the bow and arrow and pottery. This development improved their productive capacity, including livestock farming. Production was based on communal ownership. The first major social division of labor emerged: agriculture and livestock, followed by crafts.
Increased efficiency led to family units becoming owners of production
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