Four types of economic systems explained

Economic systems can be classified as Traditional Economies, command economies, market economies, and mixed economies. Traditional Economy: A traditional economy, as the name suggests, is based on a traditional approach based on ancient rules and is the most basic type of economy. Traditional economies are subsistent economies, production is aimed at self-sustenance—they consume whatever they…

How to interpret and infer a financial statement?

The analysis of financial statements means identifying a business establishment’s financial strengths and weaknesses by interpreting and inferring the financial statements of the establishment. These statements cannot be analysed by the mechanical method as a financial statement is designed to give a fair, inaccurate view. Interpreting financial statements requires analysis and appraisal of the performance…