Concept of Business Economics
Economics is the study of how societies use scares. resources to produce valuable goods and services. and distribute them among different individuals. Economic efficiency required that an economy produces the highest combination of quantity and. quality of goods and services giving its technology and scares resources.
*Trade: to get one thing such as a commodity or a service their has to be an exchange of arfother commodity or service or currency.
- Marginal charge: marginal change describes small incrimental changes or adjustment to an existing plan of action rational people often make their decision best on the comparision between marginal benifits & marginal cast
Forms of Economy
Mix economy CIndia)
1) Capitalist economy – Production are own by ecapitalist between the incomes of the rich & poor
2) Socialist economy – Production is owned and controlled by the state. Here the consumers & producers losetheir freedom in their respective economic activities Private property does not exists and hence, there is no in equality of income.
Mixed economy: For co existence of both private and public sector, private producers have to fo to produce according to the market signals, but” under the regulations of the government.
*LPG -Libralization Liberalization Privatisation, Globalization (It happened in 1991.)
. Problems of
1 Firm – price setting, revenue, organizational structure 2) Market – size, possibility of market expansion. of taxation
3 National Economy rate of economic growth 4-International E Interest rate.
4 International E-rate of Exchange market, inves implications of Foreign investment. acess to
Accounting may be describe as the language of business” that can provide a partial history of activities of a particular business.
AJ Book keeping Book keeping is a part of accounting. and is in concern with record keeping or maintaince of books of account which is often routeen and clerical in nature.
BJ Accounting: It refers to the actual process of preparing and presenting the accounts.
Accountancy: It explain why to do and how to do of various aspects ascept/ expect of accountancy.
Branches of accounting
Distinction between book keeping and Accounting Cost accounting