modul New Uzbekistan

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voting rights
Bankruptcy
liquidation
par value
default
venture capitalists
Dividend
participatory shares

Question
1.For what investors want to focus on preference shares in companies with strong credit ratings?
2.What do you think Dividend plays important role in preference share sphere?
3.Can you tell the another type of preference shares ?
4. For what reason, preference shares are often used by venture capitalists for startup companies ?

1.38 –modul

Economic resources. Gram: Prepositions III. Phrasal verbs.

Economics is the study of using resources to produce goods and services as effectively and efficiently as possible to satisfy the needs and wants of consumers. In agriculture, the producer of goods or services may be an agribusiness firm manufacturing a food product that meets the desires of consumers, or agricultural producers growing a crop to meet the needs of a food processor. To produce a product (a good or service), a business needs resources, such as labor (i.e., workers), land (e.g., a building), equipment, cash (capital) and other resources. Restated: to operate a business, the manager needs resources, and one of the manager's responsibilities is to decide which resources to use and how to use them.

Our economic system is based on the idea that the individual who provides the economic resource is entitled to be compensated.

This lesson reviews how economic theory describes resources needed to produce a product. The lesson also introduces an alternative description that is followed throughout these materials. A case study provides an example that illustrates an application of the alternative description. Additional topics on this page are intended to illustrate several applications of our understanding of economic resources.

The discussion on this page assumes the reader has previously been introduced to the concepts of economic resources, opportunity cost, balance sheet, income statement, return on assets and return on equity.

.Economic Theory (Traditional) Description

Economic resources used in the production of goods and services can be categorized as :
- Land (all natural resources),
- Labor (all physical and mental talents of individuals),
- Capital (all manufactured aids/tools/equipment used in producing goods and services, and cash), and
- Entrepreneurial ability (the initiator, innovator, strategic decision maker, risk taker, the relationship builder; restated, the person with the willingness and ability to initiate a business, innovate new ideas, bear the risk of owning a business, and establish business relationships with suppliers, customers, lenders, investors, and others).
The respective returns to these resources is often described as:
- rent for land;
- wages for labor;
- interest for capital; and
- profit for the entrepreneur.
That is, the owner of land is entitled to receive rent, the worker is entitled to receive a wage, the owner of capital is entitled to an interest payment, and the entrepreneur retains any profit.
The challenge for a business manager is to decide how to use these economic resources to profitably produce a good or service.
VOCABULARY