What is the growth rate?

The growth rate is a mathematical calculation that is obtained from the difference between two values ‚Äč‚Äčover time, taking as a reference the percentage of the first value. This indicator can be applied to different areas, such as business, demographic or economic, so that we can find out the percentage of growth of any assumption … Read more

What is a Surety?

The term guarantor refers to the person who is obliged to pay or comply with a third party, in the event that he or she cannot do so (as stated in the Spanish Civil Code). However, the term itself generates controversy and confusion, especially with the term guarantor. We will see their differences later. What … Read more

What is the global economy?

The concept of global economy represents the current economic system. A system that is based on competition and in the use of new technologies. The global economy thus implies a liberalization of the barriers that separate markets. Thus, this definition of the global economy is therefore closely related to the globalization and the world in … Read more

What is a goal?

Talking about objectives, from an economic point of view, must necessarily refer to the objectives of the company. The objectives are the goals to be achieved, and can refer to multiple variables. For example, one can speak of production objectives, as well as objectives related to each of the company's products or services. But also, … Read more

What is gross domestic product?

Gross domestic product or GDP is an economic indicator that serves to reflect the total number of goods and services that have been produced by a country in a given period of time. Of course, GDP only takes into account final production, otherwise the accounting it would become double. Furthermore, GDP is limited to measuring … Read more

What is the GOP or Gross Operation Profit?

In the hotel sector, the concept GOP, acronym for Gross Operating Profit, is widely used. In Spanish, the Gross Operating Result is used more frequently to refer to the same term. The meaning of GOP is the result of subtracting direct costs, indirect costs, payroll and direct operating expenses from total income. This financial indicator … Read more

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) are the set of standards established to reflect the image of the company. Thus, by the concept of generally accepted accounting principles, we interpret that all companies manage their own community rules and regulations on accounting to keep track of their assets. On the other hand, the General accounting plan … Read more

What is an agency?

Knowing fully all the economic concepts that exist to apply it to our company is not entirely easy. However, there are institutions or some entities that can help us to do so, when managing our company. An agency helps individuals (autonomous) and companies offering management services to those who need it. The agency helps, primarily, … Read more

What is the General Accounting Plan?

As its name indicates, the concept of General Accounting Plan refers to the current legal regulations on accounting that govern companies in the same country. He General accounting plan It is an exhaustive text that defines the set of rules related to financial operations. In the case of Spain, the current plan has been updated … Read more