Business data

Question 1

what types of data may be used by businesses when making decisions

Answer 1

financial decisions
marketing decisions
market data

Question 2

ways to measure the performance of a business

Answer 2

changes in costs
changes in revenue
gross profit
net profit
gross profit margin
net profit margin

Question 3

quantitative data

Answer 3

numerical data
displayed in charts, graphs as statistics or percentages

Question 4

financial data

Answer 4

a business which is ltd or plc must produce an annual financial report each year
can be compared year-on-year to see how the business is doing

Question 5

market data

Answer 5

PLCs will be interested to see how their share price is doing and if their competitors shares are going up or down

Question 6

financial info to understand business performance- uses

Answer 6

balance sheet- a snap shot in time of what the business owes and owns
income statement- shows if the business has made a profit or a loss during the year

Question 7

financial info to understand business performance- limitations

Answer 7

financial info published is open for interpretation so alot of people can read them and interpret
accounts can have human errors

Question 8

making business decisions- uses

Answer 8

owners and managers can use financial info to make important long-term decisions

suppliers can use the info to see if the business is credit worthy

the bank would use the info to see if they would lend money to them in the future

government to see if they paid the right amount of tax

Question 9

making business decisions- limitations

Answer 9

no social or environmental factors
financial statements don’t take into account qualitative info