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 loodetav˙Types 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-Öli,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¸competitionõlow Pr¸innovation¸consumers have wide range to choose¸DIS-rich are satisfyed¸economy unstable¸no education production¸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(tÖuse mÖÖnu ei)¸planned controlled growth¸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)¸ ˙ The projected population¸need to be taken care very sriously,you can't predict eg when new pill is invented etc¸Working population(15-65)¸All in civilian employment+army+registred unemployment¸Recently increase¸Numbers of females working is increased(decl.of manufacture,more jobs for women)¸Increasing self-employment(unempl.start relied to savings,govn help)moralty rate¸dif.statisProduction¸it is the process of converting raw or basic material orginally extracted from the eartg,sea or athmosphere into forms,which yield utility or satisfaction to consumers at a time and place convenient to the consumers¸labour or capital intensive¸types:direct¸indirect-primary(extracting),secondary,tertiary˙˙