People {actuary}| calculate insurance premiums based on risks.
People can pay off debt in installments {amortize}|.
People can fail to make required payments {arrears}.
assets and liabilities statement {balance sheet}|.
Central bank has an interest rate {bank rate}| charged to banks.
Producers can have no more net assets {bankruptcy, business}| and fail.
Accounting, not market value, can determine business value {book value}|.
Organizations {brokerage}| can arrange securities trades.
Asset buying and selling have balance {capital account balance}.
Businesses calculate capital present value {capitalization}|, using interest rate and expected future returns from capital.
Businesses can have all needed capital from investors {capitalized}|.
installment-payment interest {carrying charge}|.
Businesses have expenses {cost} for investment, labor, resources, land, capital, interest payments, and taxes.
amount owed or lost {debit}|.
Securities can be in a combined package {derivative, finance}|.
Retaining item to ship or empty container to return can incur rent or penalty {demurrage}|.
Accountants can illegally record financial transactions in two categories {double entry}|.
Goods and services have varying exchange ease {liquidity}|.
People {receiver, bankruptcy}| can hold and manage other's property during court proceedings, such as bankruptcy.
payment {remittance}|.
Documents {requisition}| can request money to make purchase.
All products business makes are sold at same market price {marginal revenue} {revenue}|. To obtain maximum profit, quantity produced must make marginal cost equal price. This is true in both competitive and monopoly markets, but price will be higher in monopoly. Businesses calculate total costs and total revenues at different prices and outputs {break-even chart}, to find the one equal point {break-even point}. Price-setting methods {average cost pricing} can add percentage of average total cost to average total cost.
Money {sinking fund}| can be in reserve to pay debt.
Investors can use their wealth {venture capital}| to start businesses.
Unusual market conditions can cause people to receive extra money or goods {windfall}.
Capital {working capital}| can earn return.
Bonds and stocks {security, money}| trade in stock or bond markets. Buying and selling establishes business or corporation actual and perceived value. Securities have probabilities {risk, loss} that they will have no dividend or interest or that they will lose market value.
Businesses, including corporations, issue indebtedness certificates {bond, finance}| to obtain money, without ownership rights. Bondholders loan money to businesses. Business property is security lien for bond-debt principal and interest. Preferred stocks are also liens against company. Business property value minus outstanding-bond value is business net value.
Securities can increase in market value {capital gain}|. Securities can lose market value {capital loss}.
Corporations can emphasize rapid capital expansion {growth stock}| or emphasize dividends.
Yield can divide into market value {price-earnings ratio}| to establish security value.
Bonds have interest rates {return}.
Stocks can have dividends {yield from stock}|.
Stocks and bonds have value {market value}| determined in the market.
Stocks and bonds have specified value {par value}| at issue.
Securities markets can have average price going up {bear market}|.
Securities markets can have average price going down {bull market}|.
Markets {board of trade}| {trade board} can be for exchanging commodities.
French securities market {bourse}.
Costs can decrease in expansion, if people can buy more quantities more cheaply {external economies} {economies of scale, finance}|, plants can specialize, or plants approach full capacity.
Businesses calculate different factor combinations that can produce same amount {isoquant}.
Businesses calculate average total cost compared to business size, find size {optimum scale}| with lowest average total cost, and choose output rate {capacity, output} with lowest total cost.
Businesses calculate average total cost compared to business size {planning curve}, find size with lowest average total cost, and choose output rate with lowest total cost.
The same production units can produce different good or service amounts {production possibilities curve}| {production frontier}.
Businesses calculate demand for production factor {productivity, business}|.
Businesses calculate output value minus material cost {value added}| for production steps.
Factor marginal product decreases if quantity increases relative to other factors {variable proportions law} {law of variable proportions}.
Businesses calculate cost of adding one more output unit {marginal cost}|. Marginal costs decrease with increased production, at low output levels. Marginal costs level off as production reaches normal plant capacity. Marginal costs rise as plant nears production capacity and rise markedly when plant expands.
Businesses calculate additional output produced by adding one production-factor unit {marginal product}|. Revenue derived from extra output {marginal revenue product, price} equals price and marginal cost. Factor increases in marginal product if other factors increase, quality increases, new technology works with that factor, factor is important in overall economy, or factor has limited amounts. Factors can have fixed supply and be capable of only one use: houses, zoned land, and people with unique talents.
When businesses produce goods or services, the most-recent ones have production rates {marginal productivity}. Marginal productivity diminishes as time spent increases, because labor tires, capital wears, and natural resources and land are harder to exploit. Production units can produce good or service, in given time with given resources and technology.
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Description of Outline of Knowledge Database
Date Modified: 2022.0225