Understanding Business, Finance, and Economics
Shares
An action, or share, represents part ownership (an aliquot) of a company. Title D Shares are equity because their performance depends on whether profits are distributed to shareholders.
Ways to obtain resources from outside the firm:
- Banks, savings banks, and other financial institutions through loans and credits.
- The issuance of bonds or debentures.
- Trade credit by suppliers or the company.
Company
A company is the basic unit of production. It hires and purchases labor and other factors in order
Read MoreDelivery Slips and Invoices: Essential Documents
The Slip
It is a document that the seller prepares and sends to the buyer along with the merchandise. Its main function is to serve as proof to establish that the goods have been delivered to the customer and also as a guide for drawing up the bill. The delivery note credits the following facts: the goods leaving the seller’s warehouse, the buyer receiving the goods, and the transportation time.
The slip is also essential evidence to prove the effects of delivery or availability of material sold to
Read MoreProduction Functions, Processes, and Cost Efficiency
Functions of the Production Department
The production function directs the company’s production.
- Procurement: Provides the necessary materials for production.
- Manufacturing: Manages the production process, transforming productive factors into a final product.
- Storage: Organizes all the materials that exist on the company’s premises, whether used in the manufacturing process or sold to customers.
- Quality Control: Verifies that the product produced has the characteristics desired by customers.
Relationship
Read MoreAutarky in Spain (1936-1959): Policies, Effects, and Assessment
Autarky in Spain (1936-1959)
Autarkic Policy. Media and the reasons for the delay in the transport situation were very poor: production equipment was destroyed, and many crops and livestock were lost. In addition, the Bank of Spain used 150 tonnes of gold to pay for war material, and measures to stimulate the economy had a negative impact. However, after 15 years of war, this is not a sufficient reason for the delay of the Spanish economy.
The importance of autarky explains the delay. The most important
Read MoreDemand Management and Forecasting: Key Concepts and Applications
Demand Management vs. Forecasting
The primary difference between demand management and forecasting: Demand management is proactive, while forecasting attempts to predict.
Economic Order Quantity (EOQ)
Alpha Company places 10 orders per year with its supplier. Each order is for an amount exactly equal to the EOQ: $500
Strategic Demand Planning
Strategic demand planning would best be utilized: To decide whether or not to close a manufacturing plant.
Forecasting Model Performance
Zanda Corp. has been testing
Read MoreAccounting Principles: Fixed Assets, VAT, and Financial Instruments
Accounting Principles: Key Concepts
Here’s a breakdown of key accounting principles related to fixed assets, VAT, and financial instruments:
Depreciation of Fixed Assets
The function of depreciation for a fixed asset is to systematically and irreversibly allocate the initial expenditure over its useful life.
Intangible vs. Tangible Fixed Assets
False Statement: Only tangible fixed assets are involved in the company’s production process.
Costs Incurred and Tangible Asset Value
Costs incurred on tangible