The share capital of companies: a.Nominal or authorized capital-max amount of mony a co is allowed to raiseb b.Issued capital-already has been raised c.partly paid up capital-kogucap-veel loodetavT ypes of shares: a.ordinary sharesb.preference shares 1.cummulative PS-when 1year not paid then next year 2.Parcipating PS-voting right 3.Redeemable-ost.varsti tagasi,cap.tostmise voimal c.Debentures-pole akts.vaid long-term fixd intrest loans˙ Private sector: a.The sole trader 1.Adv-no formal protcedure,private,indipendent decitions 2.Dis-unlim.liability,no distinction between owner-business(ded), difficult to raise capt techology to expensive˙ b.The Partnership 1.adv-more capt(still limited),exercises shared 2.dis-unlim liabil(Lim PS act 1907 allows for 'sleeping partners'.At least 1 unlim.),actions of 1partn are binding on others-abs.confidence,lim.techique˙ c.Limited co-The Private&public 1.adv-lim.liab,co has it own legal existence 2.contr.ownership,control,decitionmaking,risks(capital losses,revenue losses(gearing ratio-how many pref.shares)˙ d.co-operatives˙ Public sector:1.Public co-centr.govn a.adv-provide essential sots.needs efficency and rationalization to avoid abuse of monopoly power,difficult allocation of costs(hinda igale in.on raske maarata) strategic importance/safety control over the economy to reduce inequality political belief(people belive that is wrong when essential service is owned by private)˙ b.dis-lack of the profit,too conservative,too rash(riskib palju),monopoly,bureaucracy(rules)˙ c.contr.-ministerial,parliamentary(annual),the board council(everyday),consumer protection(councils)(Static efficency-costs of prod,dynamic effic-innovation)˙ 2.Municipal undertakings-local govn˙ Privatisation adv-efficency,increasing consumers choice,revenue throuh sales,increasing share ownership,competition,natural monopolies˙ Demand-various amounts of a good or service that consumers are willing and can by at various prices in a given period of time 1.income 2.population 3.seasonal factors 4.tastes and fashion 5.change in the price of substitutes 6.change in the price of complements˙ ELASTICITY of dem >1-elastic,price up revenue down<1-inelastic-price up,revenue up=1-unit el =0-perfectly in =oo-perfectly el avail.of substitutes proportion of income spent time period number of substitute uses> type of product(lux How closely defined-äli,esso change in Q/change in P˙ Cross&income el C-change in Q prodA/change P inB+substitutes -complements I-change in Q/change in income +normal -inferior˙ Supply-the various amount of a good or service producers are willing to put on the market at various prices in a given period of time 1.change in the price of a factor of production 2.change in the state of techology 3.govn intervension 4.new firms entering the industry˙ elasticity of supply this shows the responsiveness of supply to a small change in price˙ Govn intervension-1.imposition of a tax(ad valorem%,specific£) 2.pays subsidy 3.Imposition of a max/min price 4.Implementation of a buffer stock system(max&min) 5.imposition of a quota˙ Economy is a study of how people allocate their limited resources in order to satisfy their unlimited wants Limited resources-land(rent),labour(wages),capital(interest,productive assets),enterprise(profit).Ec.problem-scarcity leads to choice Positive economics-facts(If...then) Normative-opinion(...should...as....is...˙ Consumers sovereignity ADV-1consum.satisfaction 2compet.leads to low prices 3producers max profit 4comp.leads to efficency 5innovation 6higher living standard 7economies of scale 8choise:goods,jobs DIS-1leads to a trade cycle 2ass.2&3do not hold 3leads to monopoly 4uneven distribution of income 5life becomes expensiver 6poor Q goods 7drugs no restriction˙ 8consumers are often ignorant of the true costs&benefits of the product 9wastage resources on substitut 10wastage on advertizing 11only profitable goods prod:the wants of rich are satisfyed 12social goods are not produced( education)˙ Free market econ(capitalism) adv-cons.decide resources effective prod.quickly adapts competitionlow Pr innovation consumers have wide range to choose DIS-rich are satisfyed market failure instability short termism unstable growth-discourages investing bottleneck in S no pubic&merit goods(education) economy unstable monopolies no social security prices reflect private costs rather than social costs The centrally planned economy adv-social goods provided(educ) no inequality no wastage of close substitutes no trade cycle-continual full employment(täuse määnu ei) planned controlled growth market failure in free market no instability no short termism stable growth-encourages investing no bottleneck in S pubic&merit goods provided DIS-census may be wrong or out of date wastage on resources on bureucrats lack of joice no choice of jobs no incentive to work hard or innovative˙ Population Economic resources-lan,lab,cap,ent growth-is growing death rate(per1000in year) Infant moralty rate declines impr.in medcin birth rate parents want to enjoy high life standart family limitation IMR declines,pole vaja karta children not anymore investment natural increase migration a digression in world populationOptimum population The age structure(-15-65+)˙ the changes occur gradually As the distribution of the population changes, demand changes Such changes require factors of production,not easy to find,can't convert schools to hospidals,and people don't want to change work place If the dependent age group grows, there is a greater burden on the working population(+tax) Changes in capital market(people live from savings)