Business Chapter 18

Question 1

Fraud

Answer 1

The illegal act of cheating somebody to get money

Question 2

Gearing

Answer 2

The ratio of a company’s loan capital to its share capital

Question 3

Gearing ratios

Answer 3

Explore the capital structure of a business by comparing the proportions of capital raised by debt and equity

Question 4

Performance indicator

Answer 4

A type of performance measurement that evaluates the success of an organisation or of a particular activity.

Question 5

Profitability or performance ratios

Answer 5

Illustrate the profitability of a business composed to other business

Question 6

Ratio analysis

Answer 6

To investigate accounts by comparing two connected figures

Question 7

ROCE (return of capital employed)

Answer 7

The profit of a business as a percentage of the total amount of money used to generate it

Question 8

Window dressing

Answer 8

The legal adjusting of accounts by a business to present a financial picture that is to its benefit