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Economics

Economics. Why are companies in business? - to make money How do companies know how much money they need? - budgets budget – estimates of income and expenses. Raising Company Money: 1. sales 2. equity financing - selling stock 3. debt financing - acquiring loans.

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Economics

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  1. Economics

  2. Why are companies in business? - to make money How do companies know how much money they need? - budgets budget – estimates of income and expenses

  3. Raising Company Money: 1. sales 2. equity financing - selling stock 3. debt financing - acquiring loans

  4. How do companies manage their money? - accounting accounting – process of maintaining financial records

  5. Financial Records: - manage and control the company’s money - measure financial health of the company Financial health of businesses has a large effect on: - economics

  6. Economics - the science concerned with the process or system by which goods and services are produced, sold, and bought - the part of something that relates to money www.merriam-webster.com

  7. Historically, what has been the relationship between production and a countries economy? - high production makes for a strong economy and country - poor production makes for a weaker economy and country

  8. How does a high rate of production (GDP) help the economy? - jobs - directly - indirectly - spending - taxes

  9. Gross Domestic Product (GDP) - the total value of the goods and services produced by the people of a nation during a year - doesn’t include the value of income earned in foreign country http://www.merriam-webster.com -United States GDP 2012 = $15.68 trillion - Haiti GDP 2012 = $7.8 billion

  10. What are the effects on a locality or nation when there is a big change to the gross domestic product?

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