3.5 Assessing Competitiveness

Question 1

Income Statement

Answer 1

Summarises trading activity
Shows profits and losses

Question 2

Balance Sheet

Answer 2

Summarises net worth of business

Question 3

Non-Current Assets

Answer 3

Land, building, machinery, vehicles

Question 4

Current Assets

Answer 4

Cash, inentories, receivables

Question 5

Current Liabilities

Answer 5

Need to be paid off within 12 months

Question 6

Non-Current Liabilities

Answer 6

More than 1 year to pay off

Question 7

Return On Capital Employed =

Answer 7

(operating profit / capital employed) x 100

Question 8

Return on Capital Employed

Answer 8

How well a company is using capital

Question 9

Gearing =

Answer 9

(Non-current liabilties / capita employed) x 100

Question 10

Gearing

Answer 10

Amount of capital finances through loans

Question 11

Output Productivty =

Answer 11

Total output/ number of employees

Question 12

Labour Costs =

Answer 12

Total Labour Costs/ total output

Question 13

Absenteeism =

Answer 13

(Number of staff absent per day/ total number of staff) x 100

Question 14

Financial Rewards

Answer 14

Performance related pay
Bonuses
Profit sharing
Piece work

Question 15

Share Ownership

Answer 15

Can buy shares at discounted price

Question 16

Empowerment

Answer 16

Job enlargement
Job enrichment
Job rotation
Teamworking

Question 17

Labour Turnover =

Answer 17

(Number of employees leave per year/ number of employees per year) x100