From the category archives:

Finance Management

Extent of liability

September 1, 2010 Finance Management

Rules as to compensation: In case of dishonor of a promissory note, bill of exchange or a cheque, the holder or an endorsee of the instrument is entitled to compensation by any party liable, according to the following rules: 1) The holder is entitled to the amount due upon the instrument with the expenses properly [...]

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The elasticity of demand

August 26, 2010 Finance Management

Elasticity: A measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants. Consumers usually buy more of a good when its price is lower, when their incomes are higher when the prices of substitutes for the good are higher or when the prices of complements of the god are lower. [...]

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The market forces of supply and demand

August 26, 2010 Finance Management

When a cold snap hits Florida, the price of orange juice rises in supermarkets throughout the country. When the weather turns in New England every summer, the price of hotels rooms in the Caribbean plummets. When a war breaks out in the Middle East, the price of gasoline in the US rises, and the price [...]

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Applications of Comparative Advantage

August 26, 2010 Finance Management

Applications of Comparative Advantage The principle of comparative advantage explains interdependence and the gains from trade. Because interdependence is so prevalent in the modern world, the principle of comparative advantage has many applications. Here are two examples, one fanciful and one of great importance. Should Tiger woods mow his own lawn? Tiger Woods spends a [...]

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Why you should study Economics

August 26, 2010 Finance Management

In this excerpt from a commencement address, the former president of the Federal Reserve Bank of Dallas makes the case for studying economics. The Dismal Science According to the folks at the Guinness book, Marilyn has the world’s highest recorded I.Q. she is interested in economics education, of all things and we met a broad [...]

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Profit sharing Plans

August 25, 2010 Finance Management

A plan whereby employees share in the company’s profits. Profit sharing plans are plans in which all or most employees receive a share of the firm’s annual profits. Research on such plans’ effectiveness is sketchy. One study concludes that there is ample evidence that profit sharing plans boost productivity and morale, but that their effect [...]

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Microeconomics and Macroeconomics

August 21, 2010 Finance Management

Microeconomics The study of how households and firms make decisions and how they interact in markets Macroeconomics The study of economy wide phenomena, including inflation, unemployment and economic growth Many subjects are studied on various levels. Consider biology for example Molecular biologists study the chemical compounds that makes up living things. Cellular biologists study cells [...]

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Our First Model-The Circular Flow diagram

August 21, 2010 Finance Management

Circular flow diagram A visual model of the economy that shows how dollars flow through markets among house holds and firms The economy consists of millions of people engaged in many activities – buying selling, working, hiring manufacturing and so on. To understand how the economy works we must find some way to simplify out [...]

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Good logistics cuts costs, speeds work and improves customer services

August 19, 2010 Finance Management

With India’s gross domestic profit (GDP) growing at over 9% per year and the manufacturing sector enjoying double digit growth rates, the Indian logistics industry is at an inflection point and is expected to reach a market size of over $125 billion in the year 2010. However, as a result of the under developed trade [...]

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Asian countries in a state of rapid economic growth

August 14, 2010 Finance Management

Beginning with Japan, many Asian countries have been in a state of rapid economic growth over last 30 years. Although this growth has recently slowed the long term outlook for these countries remains excellent. Japan has become the most advanced industrialized country in the region, while South Korea Hong Kong, Singapore, and Taiwan (the four [...]

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