This document contains summaries of various business and finance topics covered in different units. Unit 17 defines the foreign exchange market as the market where currencies are exchanged and discusses its participants. Unit 19 defines the stock exchange and its role in allowing companies to raise capital and the public to invest. Unit 20 defines taxation and discusses different tax types and purposes. The document continues summarizing additional units covering topics such as customs and excise duties, insurance, accounting, auditing, marketing, and international business.
This document contains summaries of various business and finance topics covered in different units. Unit 17 defines the foreign exchange market as the market where currencies are exchanged and discusses its participants. Unit 19 defines the stock exchange and its role in allowing companies to raise capital and the public to invest. Unit 20 defines taxation and discusses different tax types and purposes. The document continues summarizing additional units covering topics such as customs and excise duties, insurance, accounting, auditing, marketing, and international business.
This document contains summaries of various business and finance topics covered in different units. Unit 17 defines the foreign exchange market as the market where currencies are exchanged and discusses its participants. Unit 19 defines the stock exchange and its role in allowing companies to raise capital and the public to invest. Unit 20 defines taxation and discusses different tax types and purposes. The document continues summarizing additional units covering topics such as customs and excise duties, insurance, accounting, auditing, marketing, and international business.
I. 1.Unit 17: What is the foreign exchange market?
2.Unit 19: Functions of the stock exchange.
3.Unit 20: Taxation. II. 1.Unit 22: ustoms an! excise charges 2.Unit 2":Insurance 3.Unit 2#:What$s accounting? III. 1.Unit 2%: Financia& statements 2.Unit 29: 'u!iting I(. 1.Unit 32: Financia& ana&)sis 2.Unit 3": *arketing 3. Unit "0: Internationa& +usinesses Unit 17: What is the foreign exchange market? ,efinition: - The foreign exchange market is the market in which such national currencies as dollars, pesos, yen, francs and others are exchanged. - The foreign exchange market is an over-the-counter market, the primary communications instrument being the telephone and the computer. -o&es: -To satisfy increasingly demand in foreign currencies of customers. -To make profit. -To help the foreign trading process much more simply. Who are the .artici.ants in the foreign exchange market? - The direct participants: + US commercial banks with deposits in foreign branch banks or foreign correspondent banks, and these foreign banks. + Several hundred dealers. - The ultimate participants + The thousands of large and small import and export firms. + The tourist and other travelers around the world. + !inancial entities such as bank, private pension. Unit 19: Functions of the stock exchange What is the stock exchange? "here securities #bonds, notes, shares$ are bought and sold at prices governed by the forces of demand and supply Who are the .artici.ants in the stock exchange? -%ndividuals -&ooperation -Stock companies -Stock brokers What are the functions of stock exchange? There are ' main functions -&ompanies can raise their capital to start or expense their businesses. -To help the public invest idle money to make profit Unit 20: Taxation What is tax? T).es of taxes? - Tax is a financial charge or other levy imposed upon a taxpayer #an individual or legal entity$ by a state or the functional e(uivalent of a state such that failure to pay is punishable by law. - Some types of tax direct tax, indirect tax, progressive tax, regressive tax) -o&es of taxes: The main role of taxes to raise revenue to finance government expenditure , Some other purposes +, dissuade people from smoking, drinking alcohol,) +, help government redistribute the wealth of society. The /a)s: - Tax shelters: are any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. The methodology can vary depending on local and international tax laws. - Tax avoiding is the legal usage of the tax regime to one*s own advantage, to reduce the amount of tax that is payable by means that are within the law. - Tax evasion is the illegal evasion of taxes by individuals, corporation and trust.
U+%T '' ustoms !uties indirect taxes levied on imports at the point of entry. Goods can be relieved from duties in a number ways: -Under ,& free circulation rules -Under outward and inward processing relief procedures. -Suspends duty on some goods which are not currently produced within the ,& or are used in industrial research or for the handicapped. 0xcise !uties: indirect taxes levied on specific products, both imported and domestically produced. --oods sub.ects to excise duties are charged with these differentials when they cross member states borders. -Aims -encourage the consumption of domestic products -dissuade people from some special goods and services, such as alcohol, tobaco) 'gricu&ture &e1ies are charged which replace customs duties on product which are covered by the &ommon /griculture 0olicy regime. They are ad.usted annually and are highly complex. '!1antages an! !isa!1antages of three taxes: 2 Advantages +, 1iscourage import +, 0rovide revenue -Disadvantages they can rarely be levied at a rate which ensures a controlled reduction import. Unit 24: Insurance What is insurance? / contract #policy$ in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The ro&es of insurance. -0rotect 2our !uture. -/dd 3ore !inancial Security. -0ay 4ff 1ebts and 4ther ,xpenses. -5ring 0eace of 3ind. 3o/ !oes insurance /orks? -There are many participants pay the premium to the insurance company. %n exchange, participants will receive a contract, which called insurance policy. -%nsurance exists to help individuals recover from the financial conse(uences of these events by pooling the resources of a large group to pay for the losses of a small group. Is insurance &ike gam+&ing? %nsurance and gambling are very different. They may be compared the type of risk, legality, nature, when does the risk exist and how to eliminate to risk
Unit 25: What is accounting
,efinition of accounting. - /ccounting is simply the means by which we measure and describe the results of economic activities. 4ur.ose of accounting. - The basic purpose of accounting is to provide decision makers with information useful in making economic decisions. 'ccounting from a user$s .ers.ecti1e. %n order to use accounting information effectively, you must understand - The nature of the economic activities described in accounting reports. - The assumptions and measurement techni(ues involved in the accounting process. - 6ow to relate the accounting information to the decision at hand. T).es of accounting information. - Financial Accounting %nformation financial accounting refers to information describing the financial resources, obligations, and activities of an economic entity. - Management Accounting management accounting involves the development and interpretation of accounting information. - Tax Accounting The preparation of income tax returns is a speciali7ed field within accounting. Unit 29: u!iting 15 ,efinition /uditing is an accounting function that involves the review and evaluation of !inancial record. 25 Functions -1iscover, correct mistake in financial record. -3ake financial statement accurate and reliable - 8eview and manage risks facing the business - 3ake suggestions for improvement - 35 'ims - -To ensure the various departments of the company follow the policies and procedures established by management. - -To evaluates information security and associated risks exposure. - -To provides support to the company9s fault correct program. - "5 ,isa!1antages of interna& au!it - -+ot accepted by the shareholders or tax authorities. - -+ot detecting the errors are high. - -+ot be shown to the person in management. Unit "4: #akerting ,enifition : set of forces or con!itions that !etermine the $rice of a $ro!uct% such as the su$$&' a(ai&a)&e for sa&e an! the !eman! for it )' consumers* In the .ast: marketing +as the task of figuring out ho+ to se&& the $ro!uct In mo!ern: It is )ase! on a !ifferent set of $rinci$&es* 25 Things /hat in1o&1e in makerting ,-eci!ing +hat the customer +ants ,-esigning an! $ro!ucing a $ro!uct that satisfies these +ants at $rofit to the com$an'* ,-eman! an! market forces* 35 -e6uirements ,The com$an' must consi!er the !esires of the consumer* ,.a+ materia&s: re/uiring &itt&e or no s$ecia& treatment* ,In(entories of this store! merchan!ise often nee! to )e finance!* "5 7usiness acti1ities in1o&1e in marketing: 011 2e&&ing the correct $ro!uct at the $ro$er $&ace* 021 2e&&ing it at a $rice !etermine! )' !eman! 0"1 2atisf'ing a customer3s nee! an! +ants 041 $ro!ucing a $rofit for the com$an' Unit 40: Internationa& )usiness 15 ,efinition of internationa& +usiness ,The exchange of goo!s an! ser(ices among in!i(i!ua&s an! )usinesses in mu&ti$&e countries4outsi!e their nationa& )or!ers* 25 Wh) ha1e internationa& +usiness? ,5ertain countries are a)&e to $ro!uce some goo!s more efficient&' than other countries: 6% 5ountries +ith a &arge $oo& of unski&&e! &a)orers are a)&e to $ro!uce $ro!ucts +hich are &a)or intensi(e more chea$&' than countries +ith high&' $ai!% ski&&e! &a)or forces* 6% 7eogra$hica& &ocation* In the free market% countries $ro!uce +hate(er the' can most efficient&' gro+ or manufacture% or +hat is of the greatest a!(antage to them* 35 -easons /h) go1ernments tr) to contro& the im.orts an! ex.orts of a countr). , countr' en8o's an a!(antage if it ex$orts more than it im$orts* ,.estrict im$orts of certain $ro!ucts*