To start of with in this lecture we focus on the Economic side of Business, where we looked at several graphs that showed us how the Sales, Quantity, Demand, Prices and others all work together. When looking at all the graphs I noticed that they were all very different to each other. The one graph that we looked at closely was the Inelastic Demand and High Elastic Demand graphs because when we placed them together you could tell that they were completely opposite.
Different UK Taxes
Income Tax
National Insurance
VAT (Value Added Tax)
CGT (Capital Gains Tax)
IHT (Inheritance Tax)
Corporation Tax
Vehicle Excise Duty (Car Tax)
Duties
Stamp Duty
Import / Export duty
Hydrocarbon Duty / Tax (Fuel Duty)
Alcohol Duty (Beer Tax)
Tobacco Duty
There are lots of things in the world that we spend on that include the NHS, the Police, Armed Forces and education.
We then moved on to look at the subject of finances itself and what it is?
What is Finances?
It is all about the control of money, also the flows of money. So where does our money go and how does it flow. We do this everyday, as we keep an eye on our money, but some are better than it than others. Although; business is no different, however a long time ago people made things, and traded them with each other to get other things that they wanted this was mostly commonly known as a Barter which is like an exchanger. The trade that was mostly made within this was about food, an example of this is the Shekel which was a set weight of barley. Furthermore into this the trade after a while used standard values and common values, which was like set weights or gold and the silver. This was then developed overtime which was better for local trading, as they began using tokens, it was the start of the many early monetary systems that began around the 700 BC, this became more important as regional powers grew. However shortly after this minted coins became more common because of the growing economies and the complexity of the economies, this was then the start of the money that is used today.
What is money?
It is a medium for smoothing trade in all things, its a measurement method of value. However arguably it has no intrinsic value. However; money has several different definitions because it is the cash that you have, the cash you have and the cash that you can get. For example from your savings. it is also the cash that you have, the cash you can get and the loan credit. The loan credit could either be short term or a long term loan.
When then moved on to talk about the cost and the price of items. The cost is what you have to give to make sure that the product is as it is described and also to make sure that the product is valued at the correct value. The price is what the item will be sold for. After this we then looked at Profit, which the difference between the cost and price that is positive because it determines how much money you will make when the product or item has been sold. Loss is the negative difference between the cost and price this shows us whether or not the item work or doesn't because if there is a loss there is a chance that the product could be taken off the market.
A few definition of other terms that we looked at and need to consider when in the design business or going into a business of our own.
Income
This is the money that you receive and comes in which could come in many ways like credit or cash.
Expenditure
This is known as the money that is usually used when it goes out of the bank, like spending.
Debt
This is how much money that you or the company OWES. It is also known as the negative part.
Credit
This is how much money beyond that which you have, you may use. It is also known as the positive part.
We have to deal with this everyday, companies are no different. The task that we were then given was to try and work out how much we spend each week and how much we spend each year? I worked out that I spend a lot and I need to try and cut down on the amount that I spend.
When then moved on to talk about the cost and the price of items. The cost is what you have to give to make sure that the product is as it is described and also to make sure that the product is valued at the correct value. The price is what the item will be sold for. After this we then looked at Profit, which the difference between the cost and price that is positive because it determines how much money you will make when the product or item has been sold. Loss is the negative difference between the cost and price this shows us whether or not the item work or doesn't because if there is a loss there is a chance that the product could be taken off the market.
A few definition of other terms that we looked at and need to consider when in the design business or going into a business of our own.
Income
This is the money that you receive and comes in which could come in many ways like credit or cash.
Expenditure
This is known as the money that is usually used when it goes out of the bank, like spending.
Debt
This is how much money that you or the company OWES. It is also known as the negative part.
Credit
This is how much money beyond that which you have, you may use. It is also known as the positive part.
We have to deal with this everyday, companies are no different. The task that we were then given was to try and work out how much we spend each week and how much we spend each year? I worked out that I spend a lot and I need to try and cut down on the amount that I spend.
