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Archive for the ‘Economic concept’ Category

Given the problems (economic Irrationality, Measuring sobreendeudamento, consumer society) already mentioned, the Spanish government is developing policies in line for their resolution; as they affect political stability, economic, legal and social development. The Spanish law does not have consumer protection measures in relation to the issue of good faith in case of indebtedness, in addition, also contains measures of prevention; these legislative shortcomings have been recognized and now are working in the matter, to create appropriate legislation governing this legislative gap. In relation to this matter, other European Union countries handle consumer bankruptcy laws, so-called laws of another chance. This law becomes an instrument of guarantee for the debtor, against the inability to meet debt payment obligations for reasons beyond their control, such as disability or death, in particular, but other reasons could also be considered .

The Spanish legislation contains the bankruptcy law , which is due to the economic insolvency in bankruptcy, although it is law is both legal and physical persons, turns out to be most appropriate for companies (legal persons) than for members of families (individuals). The problem is that the institutions or companies have legal representatives who have no personal responsibility, unlike users or individuals who are obliged to respond with their heritage. Unions and pro-consumer federations have undertaken constitutional petitions, in order to develop constitutional reforms of the subject, which introducing measures that can prevent a state of sobredeuda. Furthermore, these legal reforms intended special treatment between the debtor and its creditors in cases of divorce, unemployment, sickness and even death.

Experts on the subject, considered as a possible solution to create a shared responsibility between creditors ( credit and / or independent) and the debtor, in the case of debts that represent a significant risk. Others have considered, in addition to hold the debtor and creditor, should be responsible for the sector in general, when this does not have preventive laws of the state of default. Finally, the solution would be legislation in detail the subject, that establish preventive measures overhang. Furthermore, a system is needed both extrajudicial and judicial protection, giving rise to due process that allows a dialogue conversation between debtors and creditors by which to reconcile interests.

The billing software we use to manage both physical and the electronic invoices, help maintain control, facilitating their search and indexing.

Keeping a company’s invoices, manage billing, check that everything is up to date … It’s a bummer. Especially if we’re talking about an SME where there is no budget to hire an accountant, where everyone does everything and more these days, you have to cut costs where possible.

So we have a double problem. On the one hand it is necessary to maintain a pristine accounting billing with a program, because that better driver (among other things) the default, so we’ll be in a favorable position when demanding payment, and at least establish a plan to charge in the future. Happens in many companies that are lost invoices, payments … forget the loss of money through that.

On the other hand, a small family business, the cost of hiring a full-time accountant may be excessive.

It is therefore important, and increasingly by the need to reduce costs, use billing programs that are easy to use. That can be used by members of the company but are not professional accountants.

In the market there are several, and presumably increasing as it is a service that will expand their utility usage.

Thanks to these programs billing control bills will be easier. And although we may need, on time, use an agency accounting (or similar), the daily management of the billing will take her own company employees.

As mentioned, particularly useful for small and medium enterprises, perhaps family, where money is short at all and having to take a salary can be unbearably expensive.

We believe these programs can check a very viable solution. And in any case, just a matter of trial and check it out.

Economics is a social science that studies how individuals, organizations and countries allocate resources. Its purpose is to study the relations of production, distribution, exchange and consumption of goods, services and ideas.

The main purpose of the economy is improving well-being, which does not necessarily give them the greatest amount of consumer goods.

Perspectives and sectors of the economy
In our everyday behavior we face many economic decisions, like choosing what to spend the money available or what to do during our free time. These issues, related to the decisions of individual agents (individuals, families, companies) are studied in a part of the economy called microeconomics .

Another perspective of economics is macroeconomics, which studies the relationships between economic aggregates. The economic aggregates are elements that are composed of the sum other variables. For example, the gross domestic product (GDP) is the sum of everything produced by each individual and organization within a country, the consumer price index is composed with the average number of product prices, aggregate investment is the sum investment spending of all companies and households in a country, and so on.

The economy, in addition to these two perspectives that we discussed (macroeconomics and microeconomics), has many branches, each of which specializes in various objects of study. So we have to labor economics, which studies the labor market, public finance, studying income and state spending, the economy, which studies the flow of resources between countries, etc.

The study by each of these branches can take elements of both macroeconomics and microeconomics, as well as other social sciences such as history, psychology, etc.., As well as sciences such as logic and mathematics.

The most widespread definition of economics is that of Lionel Robbins, who said “Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses. “(Robbins 1932).

Robbins’s definition emphasizes the microeconomic branch of the economy (see: microeconomics ).

From another point of view, Welfare Economics refers to economics as the study of the conditions under which they can maximize the welfare of a community, and the choice of actions required to carry it out. This definition gives the economy more normative content, in contrast to the Robbins definition according to which economics is a science very warmly.

The purpose of the study of economics is the economic system, understood as a subsystem of the social system. A system is a set of elements but a scheme or pattern of relationships which give the set some structure. A social system is a particular system, its elements being individuals or social groups. The social system is composed of various subsystems (political, cultural, economic), but each of these subsystems can be isolated only by a process of abstraction. The subsystems interact. The economic system under study of the economy and social system subsystem is composed of the phenomena of production and distribution of goods and services.

There is talk of the economic system as a dimension (and not as part of) the social system, recognizing a close link between economic and other dimensions of the social system (political, cultural, institutional, etc.).. These relationships are so narrow that it is impossible to separate economic problems without undermining the very nature of social phenomena. Only analytical purposes, each social science “isolates” the problems peculiar to it. The different social science approaches analyze the same reality from different viewpoints. These approaches are not mutually exclusive but complementary.

The economic value added is a strict utility, incorporating the traditional definition of capital costs contributed by the shareholders in the income statement. Think of a statement in which shareholders receive “interest” as well as creditors, as if charged for the capital in the business.

The economic value added, can also be seen as a set of administrative tools that take into account the gain that should be in the company to recover its investment.

As expected, the economic value added has some advantages that should be highlighted, among which we mention the fact recognize the importance of using capital (operating assets) and their associated costs for (cost of capital).

Another important advantage presented by the economic value added, is that it shows clearly the relationship between the operating margin and intense use of capital, so that can be used to identify opportunities for improvement and appropriate investment levels to achieve them. Read the rest of this entry »

Many people have asked about the operating leverage in its business, this concept is, how it operates and performs. Throughout this article we will discuss this important economic concept.

Operating leverage is derived from the existence in the company’s fixed operating costs, which do not depend on the activity or level of production. Thus, an increase in sales is an increase in variable costs but not fixed costs, so the total cost growth is less than the income.

Given this, the economic benefits of the company increased production by high levels of sales increases in a much greater as you would if there were no operating leverage.

Some argue that operating leverage can be something harmful to a company, but we prefer to think that it is neither good nor bad, it’s a tool that must be used responsibly.

Suppose the operating leverage as a firearm in the hands of a child is quite dangerous, but in the hands of an honest cop can become a valuable tool of defense. Read the rest of this entry »