profit margins-miss duddigan

Question 1

what are profit margins

Answer 1

measure relationship between profit made and revnue

Question 2

caluction for gross profit margin

Answer 2

gross profit divided by revenue times 100

Question 3

claulation for operating profit margin

Answer 3

operating profit divided by revenue times 100

Question 4

calulation for net profit(profit for the year

Answer 4

net profit divided by revenue times 100

Question 5

what are statements of financial postion

Answer 5

can be called balanced sheets
snapshot of firms finances at fixed point in time
show assets and liabilities(what it ownes)

Question 6

what are non-current assets

Answer 6

assets business mos lielly to keep over a year e.g land

Question 7

what are current assets

Answer 7

assets business most liekely to chnage within a year e.g recieivables

Question 8

bsuiness failure

Answer 8

when it cant cover its expenses

Question 9

financial factors of why a business may come to failure

Answer 9

bad management of working capital-business not having enough to pay for day-to-day spending

Question 10

internal factors that can cause business failure (factors inside the business)