Skip to main content

General theory of goods.

What is a useful thing?

Things that can be placed in a causal connection with the satisfaction of human needs we term useful things.

If we can use or direct these things to fulfill the human satisfaction then we call them we call them goods.

Moreover is a thing has to become a good then it must satisfy the follwing conditions-

1. It should be required or there must be a human need.

2. It must have certain properties that can be modified or utilised so as to fulfill the human need.

3. Human must possess the knowledge to use that good.

4. Human must posses enough power or resources to use that thing to the level of humna satisfaction.

A thing can become good only when all of these four characters were present and will lose the value or the status of being a good when any of this character went missing. 

Therefore there must be a relation that can be estabilished between the thing and humans and this relation depends upon the inherent property of the things and in the way they can be uutilised to the human benefit and will be discarded once they lost thier value or there is a change in its properties with time or they do not satisfy the human needs at that given time.

Comments

Popular posts from this blog

The fantastic

Beat them up

Fixed Assets Management

Fixed Assets Management - Capital Budgeting Decisions Fixed assets are like the properties, infrastructure facilities that are required by the business operations to complete successfully. A finance executive has to evaluate and decide on which fixed assets the company should invest so that company can perform all its current and proposed future functions. There are various techniques that are available and that can be used by the finance department to evaluate various proposals for the investments like - pay back period, Net Present Value, internal rate of interest, profitability index. Once the economic value of those fixed assets gets over than a proper depreciation policy should also be formulated.      

Joint Stock Companies

Types of Firms 1-     Proprietary Firms 2-     Partnerships Firms 3-     Joint Stock Companies   Joint Stock Companies Can raise lage amounts of funds as the number of owners can be unlimited. The total requirements of funds of the organisation is split into the units called as shares and each share carries a denomination value called as face value or nominal value. Anyone can participate by purchasing the shares and becomes the part owner that company to the extent of his shareholding. ·          They have a legal status and get registerd under companies act. These firms can be sued or be sued, can own assets but in no way the shareholders are liable for actions of company. ·          They have limited liability and hence the shareholders are liable to the extent of their shareholding in the company. ·      ...