A Business Economic Activity and Financial Information Dissertation

A Business's Economic Activity and Monetary Information

PART 1 . THE FIRM'S ECONOMICAL ACTIVITY

1 )

ECONOMIC ACTIVITY AND ECONOMIC INFORMATION

Economics is the research that research the syndication of scant resources between alternative uses to satisfy human needs in the most efficient possible way, i. elizabeth. in such a way that specific amount of resources produces the maximum fulfillment or utility possible. Economical activity, therefore , can be defined as the set of conscious acts that humans carry out in order to satisfy their needs using limited means or methods in accordance with the economic principle of optimum advantage or perhaps optimum utilisation. Economic items are the target of financial activity and perhaps they are characterised if it is suitable to satisfy human needs directly or indirectly through being not enough or with a lack of relation to the desire felt on their behalf. Two several types of economic activity can be obviously differentiated: - Economic actions of production: activities meant to produce monetary goods (goods and services). The resources used in the production of said services and goods are called productive factors. - Financial activities of consumption: the utilization that is made from the economical goods (goods and services) produced to satisfy needs. At the moment production activities are undertaken by the economic units of production or perhaps firms, when activities of consumption are carried out by the economic units of intake (families inside the main). The firm can be, therefore , the economic unit responsible for creation activities and its mission is to produce services and goods for ingestion by combining certain resources or fruitful factors (persons and economical goods). Right now there follows a quick review of the historical advancement economic activity. This is intended to allow a better understanding of the way the current situation has come regarding, with an economy based upon exchanges of products and companies in the market and the importance involving as the instrument that facilitates these kinds of exchanges. Individuals originally pleased their needs by simply moving from one place to one other and acquiring whatever characteristics had to offer. On the one hand they acquired fruit, leaves and origins from plant life, while on the other doing some fishing and hunting activities provided meat, skins and bones. With time categories of humans started to settle in one place, abandoning their nomadic existence for a permanent arrangement in order to improve their sustenance and lifestyle. The specialisation of work also started as a means to improve efficiency, generating the need to exchange or control certain services and goods for others (barter). The problem with such a method was that the different needs of groups or individuals would not always overlap with the goods and services to be exchanged. In addition , selected goods had been perishable, challenging to transport or not conveniently divisible. As a result, this was a highly inefficient program. 1

To be able to facilitate the exchange of all other services and goods, certain durable, divisible and easily transportable merchandise were required. Different goods were followed as money over time: cereals, salt, metals such as gold and silver, precious stones, and so on. Precious metals were the most widely recognized, as they were best suited to meeting the above-mentioned requirements, and in period they gave rise for the appearance of coins. Silver and gold have been trusted as money as their value was extensively accepted, these people were easy to transport and so they maintained their properties over time. In order to guarantee which a piece of steel or endroit contained the amount of gold or perhaps silver, selected recognised entities (governments, banks) began to mint them and be sure that they had been of uniform weight and quality. Because time exceeded, states begin to distribute paperwork and money that offered the bearer the right to exchange them to get gold or silver from your countries' reserves. At present the bucks in use is usually not convertible to platinum or silver precious metal, but rather has a given value that depend upon which subjective belief that...