Financial statements are the final product of the accounting process. They provide information on the financial condition of a company. The balance sheet, one type of financial statement, provides a summary of what a company owns and what it owes on one particular day.
Assets represent everything of value that is owned by a business, such as property, equipment, and accounts receivable. On the other hand, liabilities are the debts that a company owns for example, to suppliers and banks. If liabilities are subtracted from assets (assets — liabilities), the amount remaining is the owners’ share......
An Accounting Overview
Accounting is frequently called the “language of business” because of its ability to communicate financial information about an organization. Various interested parties, such as managers, potential investors, creditors, and the government, depend on a company’s accounting system to help them make informed financial decisions. An effective accounting system, therefore, must include accurate collecting, recording, classifying, summarizing, inter pretirig, and reporting of information on the financial status of an organization.
In order to achieve a standardized system, the accounting process......
Multinational Corporations
A company often becomes involved in iritemaslonal trade by exchanging goods or services with another country—importing raw materials it may need for production or exporting finished products to a foreign market. Establishing these trade relationships is the first step in the deveLopment of a multinational business. At this stage, however, the corporation’s emphasis is still on the domestic market. As trade expands, the corporation’s dealings with companies or people outside the “home country” of that corporation increase.
The corporation then begins to view the whole world as a base for production......
Why Nations Trade
The sale of goods and services is not restricted to local, regional, or national markets: it often takes place on an international basis. Nations import goods that they lack or cannot produce as efficiently as other nations, and they export goods that they can produce more efficiently. This exchange of goods and services in the world, or global, market is known as international trade. There are three main benefits to be gained from this type of exchange.
First, international trade makes scarce goods available to nations that need or desire them. When a nation lacks the resources needed to......
The Target Market
The marketing strategies of determining product, price, placement, and promotion are not planned in isolation. Marketing analysts often look at a combination of these four factors. This combination of the four P’s is known as the marketing mix. The elements of the marketing mix focus on the consumer. In order to develop a successful marketing mix, researchers first ask two important questions:
Who is going to buy the product?
What is the potential to sell this product?
The group of customers or consumers who will probably buy the produt is known as the target market. The company directs......
The Four " P " Marketing Elements
Buying, selling, market research, transportation, storage, advertising these are all part of the complex area of business known as marketing. In simple terms, marketing means the movement of goods and services from manufacturer to customer in order to satisfy the customer and to achieve the company’s objectives.
Marketing can be divided into four main elements that are popularly known as the four P’s:
Product
Price
Placement
Promotion
Each one plays a vital role in the success or failure of the marketing operation. The product element of marketing refers to the good or service that......
Choosing Your Business Career
CAREERS IN BUSINESS
Business is an increasingly important activity throughout the world today. Consequently, the opportunities for a business career have grown in variety and number. There are now five broad fields, or areas, of business that offer exciting careers:
Management
Marketing
Accounting
Finance
Computers and data processing
Within each of these fields are specific jobs in which you can specialize. For example, within the......
Business Definition
WHAT IS BUSINESS ?
Business is a word that is commonly used in many different languages. But exactly what does it mean? The concepts and activities of business have increased in modem times. Traditionally, business simply meant exchange or trade for things people wanted or needed. Today it has a more technical definition. One definition of business is the production, distribution, and sale of goods and services for a profit. To examine this definition, we will look at its various parts.
First, production is the creation of services or the changing of materials into products. One example......
