Introduction to Finance: Principles and Institutions
Chapter 1: Introduction to Finance
What is Finance?
1. Finance is the study of how individuals, institutions, governments, and businesses acquire, spend, and manage money and other financial assets.
Financial Institutions
2. Financial institutions are intermediaries that aid in the flow of funds between borrowers and investors. Real estate developers are not considered financial institutions. Examples of financial institutions include:
- Banks
- Insurance companies
- Investment companies
Business Life-Cycle Stages
3.
Read MoreFinancial Ratio Analysis and Investment Valuation
Income Statement
A summary of revenues and expenses, and an analysis before and after income tax. EPS (Earnings Per Share) = Earnings available for common shareholders / Number of shares of common stock outstanding = (Net Income – Cash dividends on preferred stock) / Number of common shares outstanding.
Balance Sheet
Assets = Liabilities + Shareholders’ Equity
Statement of Cash Flow
The flow of cash into and out of the firm in terms of:
- Operating activities: Wages, materials
- Investing activities: Working
Human Resources Management: Job Design, Recruitment, and Labor Laws
Human Resources Management
1. Job Design in Human Resource Management
Job design focuses on structuring or restructuring key components of a position, often including responsibilities. While job analysis examines the components of a position, job design determines how these components should be combined and harmonized to enhance performance.
2. Job Enrichment and Expansion
To address ongoing challenges, Herzberg proposed “job enrichment,” which involves expanding the responsibilities, objectives, and
Read MoreHuman Resource Management: A Comprehensive Guide to Job Design, Recruitment, and Employment in the Dominican Republic
Human Resource Management in the Dominican Republic
This comprehensive guide explores key aspects of human resource management in the Dominican Republic, covering job design, recruitment, selection, employment contracts, social insurance, and pensions. We will delve into the legal framework outlined in the Dominican Labor Code and Decree Law No. 3500, providing insights into best practices and essential considerations for effective HR management.
Job Design and Enrichment
1. **Job Design:** The process
Read MorePricing Strategies: A Comprehensive Guide
Pricing Strategies
1. Pricing Strategies for New Products
Prices for Innovative Products:
- Market Skimming: Many companies that invent new products set high prices to target different market segments.
- Market Penetration: Some companies set a low initial price to penetrate the market quickly and thoroughly.
Prices for Imitation or New Products:
When developing a new product imitation, a company faces the challenge of product placement. They must determine the price while considering the target market segment.
Read MoreThe Evolution and Impact of Virtual Communities and E-commerce
Virtual Communities
Origins and Evolution
The concept of virtual communities emerged in the 1970s. However, it wasn’t until the 1990s, with the advent of the World Wide Web (WWW) and tools like email and chat, that these communities became widely accessible to the public.
Main Objectives
- Facilitate information exchange
- Offer support and assistance
- Provide a platform for informal communication and socialization
- Enable simultaneous communication among members
Typically, discussions and interactions within
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