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Difference Between Microeconomics and Macroeconomics Microeconomics Definition – Microeconomics studies the behavior of individual units like households, firms, and industries in the economy. Scope – It focuses on specific markets rather than the economy as a whole. Key Concepts – Demand, supply, price determination, elasticity, consumer behavior, and production costs. Price Determination – Analyzes how prices of goods and services are determined based on demand and supply. Consumer Behavior – Studies how consumers make purchasing decisions to maximize satisfaction . Firm’s Behavior – Examines how businesses make production and pricing decisions. Market Structures – Covers different market types like perfect competition, monopoly, oligopoly, and monopolistic competition . Supply & Demand – Focuses on how demand and supply interact to determine price and quantity. Production Theory – Analyzes how firms use resources efficiently to produce goods and services. ...

CASH FLOW STATEMENT THEORY A cash flow statement is one of the three primary financial statements that provide insight into the financial health of a business. It shows how cash and cash equivalents are moving in and out of a company during a specific period. Unlike the income statement, which records revenues and expenses, the cash flow statement records only actual cash transactions. Objectives of a Cash Flow Statement • To determine the liquidity position of a business. • To understand cash inflows and outflows from operating, investing, and financing activities. • To assist in decision-making by analyzing cash generation and utilization. • To reconcile the net cash flow with the opening and closing cash balances. ________________________________________ CASH FLOW STATEMENT SECTIONS The cash flow statement is divided into three major sections: 1. Operating Activities o Related to the core business operations of the company. o Includes cash receipts from customers and cas...

Chapter 1: Issue of Share for Cash (20 Theory Questions & Answers) What is a share? A share is a unit of ownership in a company that represents a fraction of the company's capital. What is meant by the issue of shares? The process of offering shares to the public or private investors for raising capital. What are the different types of shares? Equity shares and Preference shares. What is the difference between equity and preference shares? Equity shares provide voting rights but no fixed dividend, whereas preference shares offer fixed dividends but limited voting rights. What is the meaning of the authorized capital of a company? The maximum amount of capital a company is legally allowed to raise. What is issued capital? The portion of authorized capital that a company has issued to shareholders. What is subscribed capital? The part of issued capital that investors have subscribed to. What is called-up capital? The portion of subscribed capital that the...

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