Understanding Cash Flow, Productivity, and Business Objectives
The cash flows are the benefits obtained by the company, not to divide among the partners, and are used to cover your financial needs. Example of an advantage that can be pointed out: it allows greater autonomy and financial independence.
Market Structures: Monopoly and Oligopoly
1. In the case of a monopoly, it is a single company that supplies the entire market for a good or service which has no substitute, so that the monopolist can freely determine their conditions. First, in an oligopoly, a few companies divide the market among themselves, each taking sufficient weight to act on prices or quantities offered.
Labor Productivity
2. The average labor productivity is the ratio between the volume of production and the amount of work employed to achieve it. A simple way to measure it is to calculate the ratio between production and the number of hours worked for this production.
Defining a Company
1. Setting an example of a company: The company can be defined as an economic unit that combines the different factors of production, ordered the implementation of the development is according to a particular organizational structure for purposes of achieving certain goals, including highlighting the corporate profit (Note: this definition proposal should be taken only as an advisor to accepted as valid if other possible definitions performed according to other criteria).
Possible Objectives of a Company
Among the possible objectives of the company may be:
- Maximize profit, or obtain the maximum return on invested capital.
- Growth and market power, to ensure future and higher profits.
- Stability and adaptability to the environment.
- Social responsibility and ethics with the group belonging to it (employees, customers, suppliers) and society and environment develop activity.
Personal items (owners, directors, employees, suppliers, customers … Elements technical (equipment, goods, intangible -Knowledge, know-how, software, technology). Financial elements (equity, funds others). Organizational elements (structure relations, labor regulation) …
Functional Areas of a Company
Can distinguish four basic functional areas Company:
- Output: set of processes, procedures, methods or techniques to obtain the goods and services.
- Commercial: includes the marketing of goods and services produced.
- Financial: refers to financial planning company’s investment decisions, obtaining financial control and financial balance the company.
- Organization: establishes the framework for coordination and interaction between members of the company.
The department within the company that coordinates these operations is called the R & D, and performs Long-term investments, so the short term not always possible to obtain income. Also can comment that small and medium enterprises have technical, organizational and financial to develop this type of activity.
Methods of Acquiring Technology
With regard to methods of acquiring technology, one can comment on some of those who mentioned below:
- The creation by the company itself, through R & D activities
- The creation of research centers or technology, either through private or public.
- Acquisition in the market, buying patents or technology contracts.
- Cooperation to develop to Business certain projects.
- Partnerships with research centers.
Types of Results
4. The main types of results that the difference on account of gains and losses are the result operating, financial results and results extraordinary. It also accepts as valid the offered as the answer that is established in PGC 2007, ie, differentiating the result of operating and financial results.
Porter’s Five Forces
2. As an advisor, in answer to this question could comentarse aspects that appear collected below:
The analysis of Porter describes five forces that influence the competitive strategy of a company and determine the long-term profitability of a market or some segment thereof. Porter developed this method of analysis to discover what factors determine the profitability of an industry and their companies. For Porter, there are five different types of forces that mark the success or failure of a industry or a company:
Level of Rivalry of Existing Competitors
Depend on the number of competitors who compete.