Making Financial decisions 🏦 Flashcards
What is the use of quantitative data?
make business decisions of aims and objectives compare performance to competitors
How can graphs and charts be used?
To demonstrate relationships or correlation between two sets of data
represent proportions show trends over time
Easy to interpret
What are the three kinds of data?
Marketing data - questionnaires ratings
Financial data - cost sales figures of revenue tax rates
Market data - growth of market market map demographics
What are the limitations of financial data?
Historical data - business will make decisions about the future based on past performance
It may be hard to get reasons behind the numbers
Businesses cannot be judges just go on for an actual performance but reputation and employee motivation
What are the two organisational structures?
Hierarchical and flat
What is a hierarchical organisational structure?
Long chains of demands more spans of control and many levels
What are the positives of a hierarchical structure?
workload is shared less stress
Lots of opportunities for promotion
Lots of subordinates to delegate
What are the negatives of hierarchical structures?
Takes a long time for decisions to be made
Delegations can get confused
expensive as there’s more wages 
What is delegation?
When work is passed to a subordinate in a hierarchy
What is span of control?
Number of subordinates that can be delegated
What is the chain of demand ?
Flow of info
What are the positives of delayering?
Less wages to be paid
shorter a chain of command
What are the negatives of delayering 
Bad. Motivation loss of friends
make people redundant which is expensive
less opportunities for promotion
Less people to delegate
more workload
What is flat structures
Short chains of control
a few layers
and short chain of command
What are the positives of flat structures?
Quick command businesses can adapt quickly
cheap unless management costs
employees can feel empowered that they’re involved in most tasks
