Understanding Unemployment and the Labor Market
B3. Unemployment
Unemployment is the situation faced by workers who are in a position where they do not find paid work. The population is divided into active or inactive. The active population is the set of individuals in a society who are of working age and able to work, and who either have or want a paid job. The workforce is made up of the employed and the unemployed. In Spain, the working-age population is between 16 and 65 years old. The inactive population comprises minors, the disabled, pensioners,
Read MoreHuman Resources: Training, Administration, and Equality
Human Resources Training
Employee training enables company personnel to adapt to changes in society and technological advances. Companies should provide training relevant to the tasks performed within them, depending on their goals and plans. Training not only prepares individuals for the labor market but also allows the company to adapt and implement changes for better results. Training can be conducted internally, especially within larger companies.
A good training program involves a dedicated person
Read MoreFiscal Policy Instruments: Budget, Revenue, Debt
Main Fiscal Policy Instruments
The main fiscal policy instruments are explained below:
1. Budget
A budget is an estimate of government expenditures and revenues for a fiscal year, usually presented to the parliament by the finance minister. In Nepal, the budget is submitted to the parliament by the finance minister in the month of Ashadh, each fiscal year. It is a financial document containing a preliminary approval of estimates of government expenditures and revenues. In other words, the estimated
Read MoreInvestment Decisions: Concepts, Types, and Selection Methods
Investment Decisions
1. Concepts and Types of Investments
Investments are classified as:
- Fixed Assets and Current Assets
- Financial Investments and Productive Investments
Productive investments are further classified as:
- Replacement investment to maintain the company (to replace worn equipment)
- Replacement investment to reduce costs or for technological improvements (replacing equipment)
- Investment for expansion of existing products or markets (to increase the production of existing products)
- Expansion investment
Business Finance: Internal, External, and Long-Term Sources
Sources of Finance
A business might have access to various sources for financing its needs. These sources of finance can be classified as:
Internal and External Sources
Internal: This is money raised from inside the business. It includes:
- Sales of Assets: Businesses might sell off old, obsolete assets that are no longer used to raise additional cash.
Advantage: Better use of capital.
Disadvantage: A new business might not have any old or obsolete assets.
- Retained Profits: Businesses (especially limited
Short-Term External Financing: Options and Strategies
Short-Term External Financing
Short-term external financing includes all funds raised by a company from external sources, with a maturity of one year or less. Common instruments include:
- Commercial loans and supplier credit
- Short-term bank loans
- Discounts on commercial paper
- Sales of receivables (factoring)
Trade and Supplier Credit
Also known as trade credit, this type of financing arises from the payment terms offered by suppliers after a sale. These terms typically range from 30 to 90 days, allowing
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