Working Capital Management and Fixed Asset Depreciation
Depreciation of Fixed Assets
Annual Depreciation of Fixed Assets
It reflects the annual depreciation for fixed assets, accounting for their reduction in value due to use in the production process. This is recorded as an Expenditure.
Accumulated Depreciation of Fixed Assets
This collects the accumulated depreciation made annually for all elements of fixed assets (or non-current assets) suffering depreciation since their acquisition. It functions as a contra-asset account, meaning it is active but carries
Read MoreEssential Marketing Concepts, Global Strategy, and Consumer Behavior
Core Marketing Definitions and Strategies
The 4 P’s of Marketing (The Marketing Mix)
Define each of the 4 P’s of marketing and provide an example of each:
- Product: Creating value (goods vs. services).
- Price: Capturing value (money, time, and energy).
- Place: Delivering the value proposition.
- Promotion: Communicating the value proposition.
Definition of Value
Value is the relationship of benefits to costs—what the consumer gets for what they give.
Three Macro Strategies for Developing Customer Value
List
Read MoreLimited Companies vs Cooperatives: Structure and Shares
Limited Companies (SA/SL)
Limited Companies are subject to corporate income tax.
Formation and Constitutional Requirements
The formation of a Public Limited Company requires a public deed (Articles of Incorporation). This foundational document must specify, among other things, the following essential elements:
- Company Name: The official legal designation.
- Social Object: The specific business activities the company will undertake.
- Social Capital: How the capital is divided into shares, including the number
International Economic Integration, Trade Blocs, and Global Disparities
Mechanisms of Economic Integration
Economic integration mechanisms are based on different convenios (agreements) agreed upon between countries to allow a greater degree of economic cooperation by reducing tariff and non-tariff barriers. Five different stages can be distinguished:
- Area of Preferential Tariffs: Characterized by the reduction of tariffs between two or more countries. These reductions typically cover only a few products.
- Free Trade Area: Characterized by the partial or total reduction
Core Concepts of Money, Payments, and Interest Rates
What is Money?
Money is anything generally accepted as payment for goods and services (G&S) or in the settlement of debts.
Key Functions of Money
- It acts as a medium of exchange.
- It is a unit of account.
- It is a store of value.
- It offers a standard of deferred payment.
Money, Income, and Wealth
- Money: A component of wealth.
- Income: A person’s earnings over a period of time.
- Wealth: The sum of a person’s assets minus their liabilities.
Transaction Costs and Specialization
Transaction costs are the costs
Read MoreFinancial Instruments and Business Structures: Debentures, Shares, and Company Types
Types of Debentures
Debentures are long-term financial instruments issued by companies to raise funds from investors. They are a form of debt and come with a fixed interest rate. Debentures can be classified into different types based on convertibility, security, tenure, and transferability.
Based on Convertibility
- Convertible Debentures: These can be converted into equity shares after a specified period. They are further classified as:
- Fully Convertible Debentures (FCDs): The entire debenture amount