1 What is business? Flashcards
1
Q
reasons why uk businesses are concerned with paying dividends
A
- uk firms tend to put shareholder needs above stakeholder needs
- uk firms tend to be more focused with short termism
- media/ external influences place higher precedence on dividend payouts
- shareholders invest money into their business
2
Q
who are shareholders in a business
A
the owners of a business; they invest capital for returns and decision making power
3
Q
ordinary share capital is
A
the amount of shares a business has
4
Q
ordinary shares are
A
issued to the owners of a company giving them decision making power
5
Q
what isn’t guaranteed with ordinary shares
A
dividends
6
Q
market capitalisation is
A
the value of the total issued shares in a plc
7
Q
share price is
A
the cost to purchase an individual share, determined by supplying demand of the organisations shares
8
Q
share price can be influenced by
A
- politics
- economy
- investors confidence
- previous and predicted financial performance
- perceived managerial competence
9
Q
importance of share price
A
- indicator of future performance
- measure of managerial performance
- determines risk of takeover
