Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > 3.5 > Flashcards

3.5 Flashcards

1
Q

what is a profit and loss statement

A

a financial document showing the company revenue or income over a year and their costs and expenditure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

why are profit and loss statements useful

A

legal requirement
sums up performance for stakeholders
can be compared to previous years
investors and lenders need to see one before making deals
can help with forecasting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is sales revenue

A

money obtained by the sale of goods or services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is cost of goods

A

costs that are directly attributed to sales, vary depending on sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

how do you calculate gross profit

A

sales-cost of sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are expenses

A

other costs a business has that are not directly associated with sales or production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is operating profit

A

profit after all expanses have been taken off

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what is capital employed

A

measure of the value of assets minus current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what is a balance sheet

A

shows how much a business is worth, shows a businesses assets & liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what are non current assets

A

long term assets of a business which are not expected to be sold within the next year of trading

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are intangible assets

A

copyright, trademarks, patents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what are tangible assets

A

property, equipment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what are current assets

A

short term assets of the business which are likely to be turned into cash within the next year of trading

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are inventories

A

stocks of raw materials

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are non current liabilities

A

debts which are not expected to be paid off within the next year of trading

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

give some examples of non current liabilities

A

pensions
money set aside for future expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are current liabilities

A

debts which are expected to be paid within the next year of trading

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

give some examples of current liabilities

A

corporation tax
short term loans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what are the uses of a balance sheet

A

evaluate performance of the business
evaluate potential of a business to an investor
summary valuation of the business

20
Q

what are the limitations of a balance sheet

A

value of assets stated may not be the same as the amount they will sell for
intangible may not include other non monetary value

21
Q

why do the government have an interest in a businesses balance sheet

A

they will use the financial information to calculate the amount of tax that a company has to pay

22
Q

why do shareholders have an interest in a businesses balance sheet

A

analyse the accounts and decide whether their investment capital is being used effectively

23
Q

why do directors & senior managers have an interest in a businesses balance sheet

A

use accounts to assist their medium & long term planning

24
Q

what is the equation for current ratio

A

current assets/current liabilities

25
Q

what is the equation for the acid test ratio

A

current assets - stock/current liabilities

26
Q

what is the equation for gearing ratio

A

loan capital/capital employed X100

27
Q

what is the equation for ROCE

A

operating profit/capital employed X100

28
Q

what is operating profit

A

profit before interest & taxes

29
Q

what is the equation for capital employed

A

fixed assets + current assets - current liabilities

30
Q

what are the limitations of using ratio analysis

A

based on a snapshot of the business - markets are dynamic figures could quickly change
only as reliable as the information provided
needs to be compared against other figures
must be kept in context of the industry

31
Q

if a business wishes to achieve their objectives it is important that the workers:

A

know the objectives
agree with these aims
work towards objectives

32
Q

what could happen to organization whose employees do not work towards the businesses objectives

A

progress is slow
strategic achievement suffer
uncoordinated
projects don’t get delivered
operational performance declines
giving up productivity gain of up to 25%

33
Q

what are employee contributions

A

training & skills - a better trained workforce is generally more motivated, flexible & productive
empowerment - allowing workers to contribute ideas & allow decision making to increase moral
leadership - style of leadership must be appropriate to the business circumstances

34
Q

how can you measure workforce moral

A

surveys
appraisals
waste levels
reject rates
consumer complaints
industrial relations record

35
Q

what are the reasons for poor motivation

A

employees feel the job or workplace is not what they expected
there is mismatch between job & person
too little coaching & feedback
too few growth & advancement opportunities
feel devalued & unrecognized
feels stress from overwork & have bad work/life balance
loss of trust & confidence in senior leaders

36
Q

how can workforce morale be calculated

A

labor productivity
labor turnover
absenteeism rate

37
Q

what is the equation for labor productivity

A

output per time period/average number of employees

38
Q

how can labor productivity be improved

A

kaizen, TQM, lean production

39
Q

what is absenteeism rate

A

measures the proportion of the total workforce who are absent over a particular period of time

40
Q

what is the equation for absenteeism rate

A

number of working days lost/total number of working days available X100

41
Q

what causes high absenteeism rates

A

poor recruitment, weak induction, lack of challenge, low pay rates

42
Q

what is the equation for labor turnover

A

number of employees leaving/average number of employees X100

43
Q

what is low staff morale or job satisfaction caused by

A

poor management, stress, role overload or underload, lack of recognition, poor working conditions

44
Q

how could low staff morale and job satisfaction be improved

A

job enlargement, job rotation, incentive schemes

45
Q

how could a business reduce absenteeism

A

introducing more flexible working practices, ensuring jobs are interesting & challenging, improving working conditions & reducing dissatisfaction, improving relations between employers & employees
introducing attendance bonuses as an incentive to attend regularly

Business (22 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions