Inflation: Causes, Measurement, and Economic Impact
Understanding Inflation: Causes and Measurement
8.1 What is Inflation?
Inflation is the continued and widespread increase in the prices of goods and services in an economy over a period of time. A core problem that any economy must solve is inflation. If prices rise, fewer goods can be purchased with the same amount of money. When economies become increasingly interdependent, rising prices in one economy (and not in others) means that it sells fewer goods and services to others and buys more products
Read MoreSelf-Financing and Short-Term Financing for Businesses
Self-Financing for Businesses
While pursuing enrichment, self-financing company growth, this is still its productive capacity. This form of self-financing is composed of both the funds that the company intended to go to paying off their equipment and renew as resources or funds set aside to meet future contingencies and risks.
Key Components of Self-Financing
- Depreciation: Production teams lose value over time due to use or technological obsolescence. This loss of value, or depreciation, is reflected
Distribution Channels and Retail: A Detailed Analysis
Definition of Distribution
Distribution is the set of operations needed to make products and services available to those who will consume or use them.
Distribution Channels
Channels are the different paths that products take in the process from the producer to the consumer or end-user. The process can be short or long, depending on the number of intermediaries involved.
Effects of Channel Length
- Direct Channel: The company controls the entire marketing process at a low cost. This type of channel is used
Accounting for Advances, Bonuses, Discounts, and Depreciation
Advances
- Advances to Suppliers: Giving money for future acquisitions, creating a credit (from the client’s perspective).
- Advances to Customers: Giving money on account for future purchases, creating a debit (from the seller’s perspective).
VAT (Value Added Tax)
The VAT buy/sell books reflect whether your balance is a debtor or creditor. When the tax debit is greater than the tax credit, you are in debt. The balance reverses in the opposite scenario.
Bonuses
- Awarding a Bonus: Involves an increase in the
Understanding Market Concepts and Research Techniques
Item 14: Market Concepts and Classes
From a marketing point of view, a market must be understood as a set of persons (natural or legal) that meet the following requirements:
- They feel a need.
- They have buying power.
- They are willing to buy.
Markets can be classified according to various criteria: the type of demand, the level of competition, opportunities, and geographic expansion.
Types of Demand
Depending on the type of demand, there are different market classifications:
- Consumer Market: These markets
Working Capital Management: Funding and Financing
Policy Coverage in Working Capital Management
Funding requirements, from the point of view of temporality, have the following classification:
- Permanent: The resources at all times of operation of the business are needed. Their absence means significantly altering the nature of operations.
- Temporary: These are, by their nature, flexible and can be reduced according to seasonal needs or decisions taken by the administration.
The hedging policy establishes the criteria that permanent needs be funded long-
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