Small Business Finance
BUS C170- Small Business Finance
Web Search #1
1. What is finance? Finance is the management of banks for example the interest rates on a particular loan. It includes the management of investments such as the distribution of dividends. Finance also includes but is not limited to, the management of money for example the inflation and deflation of currency.
Information used from: http://education.yahoo.com/reference/dictionary/entry/finance
2. What is a market? Name five types of markets in which you participate. What markets trade economic resources?
A market is a consensus between many people that one’s good/service/currency can be traded for another’s goods/service or currency. I participate in the financial market by budgeting my own income; retail/wholesale/commodities market by using currency to purchase goods and services; stock market by purchasing shares from 5 different mutual funds. My current career is security / law enforcement which would be supplying a service for the government which would be a labor market.
Information used from: http://www.economywatch.com/market/
3. Compare marginal revenue, marginal cost, and marginal revenue product. Marginal revenue is extra income made when selling an additional product like a car manufacturer selling 1 extra car, marginal cost would be how much the manufacturer would spend on making the additional car including parts and labor and marginal revenue product would be the extra income with the subtraction from the marginal cost generated from parts/labor because the work created the car to sell. Information used from: http://economics.fundamentalfinance.com/micro_revenue.php http://www.econmodel.com/classic/terms/mc.htm; http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=marginal+revenue+product
4. Distinguish between economic and financial capital. Economic capital is a product that is produced and can be sold; financial capital is available funds to pay for real
Web Search #1
1. What is finance? Finance is the management of banks for example the interest rates on a particular loan. It includes the management of investments such as the distribution of dividends. Finance also includes but is not limited to, the management of money for example the inflation and deflation of currency.
Information used from: http://education.yahoo.com/reference/dictionary/entry/finance
2. What is a market? Name five types of markets in which you participate. What markets trade economic resources?
A market is a consensus between many people that one’s good/service/currency can be traded for another’s goods/service or currency. I participate in the financial market by budgeting my own income; retail/wholesale/commodities market by using currency to purchase goods and services; stock market by purchasing shares from 5 different mutual funds. My current career is security / law enforcement which would be supplying a service for the government which would be a labor market.
Information used from: http://www.economywatch.com/market/
3. Compare marginal revenue, marginal cost, and marginal revenue product. Marginal revenue is extra income made when selling an additional product like a car manufacturer selling 1 extra car, marginal cost would be how much the manufacturer would spend on making the additional car including parts and labor and marginal revenue product would be the extra income with the subtraction from the marginal cost generated from parts/labor because the work created the car to sell. Information used from: http://economics.fundamentalfinance.com/micro_revenue.php http://www.econmodel.com/classic/terms/mc.htm; http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=marginal+revenue+product
4. Distinguish between economic and financial capital. Economic capital is a product that is produced and can be sold; financial capital is available funds to pay for real