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SALES MAXIMIZATION: The notion that business firms (especially those operating in the real world) are primarily motivated by the desire to achieve the greatest possible level of sales, rather than profit maximization. On a day-to-day basis, most real world firms probably do try to maximize sales rather than profit. For firms operating in relatively competitive markets, facing relative fixed prices, and relatively constant average cost, then increasing sales is bound to increase profits, too. Moreover, according to the notion of natural selection, even firms that seek to maximize sales, those that also maximize profit will remain in business.
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Lesson 19: Money Creation | Unit 1: A Little Magic
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Page: 3 of 23
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The magic is that banks create something of value: they create money. Note that: - To create other valuable items we need valuable resources.
- Banks create money by adding to a checking account.
Precedents:- Governments have done this for centuries: When they print paper currency, they transform items with little or no value into money with more value, value that is created from nothing.
The reality of money creation:- Banks do part of the money 'printing' or creation function historically performed by governments.
- This is the reason why banks are heavily regulated.
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ECONOMIC RESOURCE A resource with an available quantity less than its desired use. Economic, or scarce, resources are also called factors of production and generally classified as either labor, capital, land, or entrepreneurship. Economic resources are the workers, equipment, raw materials, and organizers that are used to produce economic goods. Like the more general society-wide condition of scarcity, a given resource falls into the economic or scarce category because of it has a limited availability relative to (potentially unlimited) productive uses.
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Rosemary, long associated with remembrance, was worn as wreaths by students in ancient Greece during exams.
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"Plans are only good intentions unless they immediately degenerate into hard work." -- Peter Drucker, management consultant
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AACP
American Assocation of Commercial Publications
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