topic 2 management process part 2: finance,human resources, ethical buss behaviour

Question 1

what is finance phase responsible for

Answer 1

organises the financial resources needed to pay for all aspects of each key business function

Question 2

how is money movement recorded and summarised

Answer 2

financial statements

Question 3

list the three main financial statements

Answer 3

income statement
balance sheet
cash-flow statement

Question 4

what is a income statement

Answer 4

how much the business sold,how much at cost to make these sales

Question 5

what is gross profit

Answer 5

the amount of profit made after deducting all of the cost of sales

Question 6

what is net profit

Answer 6

the amount of profit made after deducting the expenses from gross profit

Question 7

what does COGS stand for

Answer 7

cost of good sold

Question 8

what is cost of good sold

Answer 8

is the cost the business had to pay for the goods it later sold to the customer

Question 9

what is the equation for gross profit

Answer 9

gross profit = sales revenue- COGS

Question 10

what is the equation for Net profit

Answer 10

Net profit = Gross profit - Expenses

Question 11

what is the equation for COGS

Answer 11

COGS = (opening stock + purchases) -closing stock

Question 12

what is a balance sheet

Answer 12

a statement showing the net worth of a business on a particular day

Question 13

what is net worth

Answer 13

the total value of something

Question 14

what does the balance sheet do

Answer 14

it indicates the assets and debts(or liabilities) of a business

Question 15

What is the equation for the owners Equity

Answer 15

Owner’s equity = assets - liabilities

Question 16

what is the owner equity

Answer 16

the net worth of the business if it where to be sold

Question 17

what is an asset

Answer 17

what you own

Question 18

what is a liabilitie

Answer 18

what you owe

Question 19

what dose the term current mean in bussiness

Answer 19

within the first 12 months

Question 20

what does the term non-current mean in bussiness

Answer 20

over 12 months

Question 21

what is working capital

Answer 21

is available to meet day to day, ongoing expense of the business

Question 22

what is the equation for working capital

Answer 22

Working Capital = Current Assets - current liabilities

Question 23

what is a cash flow statement

Answer 23

a statement that indicates the cash balance position at the end of the accounting period.

Question 24

what is a cash flow fortcast

Answer 24

a proposed or estimate picture of cash income and cash receipt for future period

Question 25

what is a cash receipt

Answer 25

money coming into the business

Question 26

what is cash payments

Answer 26

money leaving the business

Question 27

what is cash balence

Answer 27

amount of cash the business has

Question 28

who would want to read your financial statements

Answer 28

lenders

competitions

Question 29

name the 4 stages in the human resources cycle

Answer 29

recruitment
training
employment
voluntary/involuntary separation

Question 30

what is ethical business behaviour

Answer 30

behaviour that reflect the code of condust

Question 31

what is a code of conduct

Answer 31

a set of values that are upheld by the business, it’s managers and it’s staff