businesss Flashcards
what has allowed the development of corporate style practices
legislation allowing non veterinary ownership of practices
what is meant by a corporate practice
practice owned by a company and not an individual
what are the 4 types of corporate practices
consolidators, joint ventures, franchises and large independents
what is meant by a consolidators corporate and give example
access to informationa nd resources, synergy across practices, good exit strategy, retain original brand and most of staff independent vetcare and CVS `
what is a good about a joint venture and give examples of some
centralised asmin, brand identity etc, vets4pets and companion care vets
BUT messy divorce - 2 or more companies join
what is a franchise
right to sell companys products in a particular area using the companys name - risk to franchiser and franchisee
what is meant by a large indepentant corporate and give examples
technically not corporate, growth through consolidation - vetsnow and goddard veterinary group and best friends veterinary group
what are the purpose of buying groups
represent members in negotiations of parmiceuticals and services and have an annual fee - should always make more from discounts than subscription costs e.g. st francis group xl vets and premier vet alliance
what are limited companies
locums and corporates - profits taken as devidends
what is an asset
resource owned by a business that is the result of previous events and from which future economic benefits are expected to flow
what is a current asset
tangible and will create cash within 1 year
what is a non-current asset -
takes more than 1 year to create money
what is a liability
money owed by the company to other businesses or individuals
what is a current and non-current liability
current is due within a year and non current is due in over a year
what are merchant goods
remain unchanged (transactional) - supermarkets, selling cloth
what are extractive profit drivers
natural resources
what are manufacturing proft drivers
raw materials to intermediate or final goods
what are service profit drivers
exposits real or intangible assets to create a product or service
what is a real and intangible asset
real are things such as planes and buildings and intangible are things like people and knowledge
what are variable costs
can be directly attributable to the production of the good or service and fluctuate with demand
what is a fixed cost
id nothing is produced then this cost will remain
what drives revenue
transaction value x number of transactions
what is NOPAT
net operating profit after tax = NOP (1-tax rate)
what is EBITDA
earnings before interest and tac also known as EBIT = operating profit - should be 20% of turnover
