The Social Economy: A Comprehensive Guide to its Importance and Impact
1. What is the Social Economy?
Values, Relevant Figures, and Types of Organizations
Definition: The social economy comprises a diverse range of enterprises and organizations.
Values:
- Prioritizes people over profits
- Operates under democratic governance
- Reinvests most profits back into the organization
Relevant Figures: The social economy encompasses 2.8 million enterprises and organizations in Europe, employing 13.6 million people and contributing to 8% of the EU’s GDP.
Types of Organizations:
- Cooperatives
- Mutuals
- Associations
- Foundations
- Social
Financial Administration and Investment Risk
OBJECTIVE OF FINANCE
- Maximize the value of the company’s market
- Maximize the assets of the company
- Maximize the wealth of the investor in the company
- Maximize the return on short and long term investments and minimize the risk of the company
FUNCTIONS OF THE FINANCIAL ADMINISTRATION
- Allocate funds, investment of short and long term
- Obtain financial resources, worry about funding
- Financial Planning; make short budget (budget of cash) and long term (capital budget).
- Dividend Policy, Standards that provide
International Expansion Strategy: A Comprehensive Guide
Hofstede’s Cultural Dimensions Theory
This framework helps understand cultural differences between nations.
Power Distance
Measures how a society deals with inequality and hierarchical structures:
- Low Power Distance: Power is widely dispersed, relations among people are more equal. The lower the power distance, the more individuals will expect to participate in organizational decision-making.
- High Power Distance: Characterized by inequality, high educational and physical distance, and concentrated
The Power of the Social Economy: A Guide to its Principles, Importance, and Impact
BUSINESS WITH A GLOBAL CAUSE: SAMPLE QUESTIONS
1) What is the Social Economy?
The social economy comprises diverse enterprises and organizations, including cooperatives, mutuals, associations, foundations, and social enterprises. These entities share common values:
- Primacy of people and social objectives over capital
- Democratic governance
- Solidarity
- Reinvestment of most profits for sustainable development
The social economy plays a significant role in the European social market economy, with 2.8 million
Read MoreThe Importance of Environmental Regulations in Transportation
Opinion Essay: The Environmental Impact of Air Travel
In the era of jet-setting, air travel offers unparalleled convenience but also carries a significant environmental impact. Aviation emissions contribute to climate change, but there are ways to tackle this issue.
Solutions for a Sustainable Future
Firstly, investing in more sustainable aviation technologies, such as fuel-efficient aircraft and the development of biofuels, can make a difference. Additionally, improving air traffic management can
Read MoreIndex Numbers: Types, Uses, and Importance in Decision-Making
Fixed Base Method
In the fixed base method, a particular year is generally chosen arbitrarily, and the prices of subsequent years are expressed as relatives of the price of the base year. Sometimes, instead of choosing a single year as the base, a period of a few years is chosen, and the average price of this period is taken as the base year’s price. The year selected as a base should be a normal year, or in other words, the price level in this year should neither be abnormally low nor abnormally
Read More