theme 2 mrs carr Flashcards
1
Q
how do you calculate a profit margin
A
profit/revenue x 100
2
Q
how do you calculate gross profit
A
Revenue - cost of production
3
Q
how do you calculate operating profit
A
gross profit - operating costs
4
Q
how do you calculate net profit
A
operating profit - liabilities
5
Q
how do you calculate a current ratio
A
current assets / current liabilities
6
Q
how do you calculate an acid test ratio
A
(current assets - inventory) / current liabilities
7
Q
how do you calculate working capital
A
current assets - current liabilities
8
Q
Internal reasons for business failure
A
lack of innovation
lack of funds
lack of planning
poor leadership
9
Q
External reasons for business failure
A
competition
economic conditions
changes in legislation
changes in consumer taste
