Unit 7 business

Question 1

Vision statements

Answer 1

sets out what a business wants to be in the future

Question 2

cooperate objectives

Answer 2

medium to long term goals usually set after a mission statement

Question 3

external influences on corporate objectives

Answer 3

state of economy , global prices , migration

Question 4

internal influences on cooperate objectives

Answer 4

poor performance , business culture

Question 5

short termism

Answer 5

pressure to deliver results

Question 6

advantages of swot

Answer 6

low cost and straight forward can be used by all business
encourage managers to think internal and external
recognises risks and weaknesses that a business can deal with

Question 7

disadvantages of swot

Answer 7

does not provide any judgement to how important they are
data provided must be solid and reliable

Question 8

tangible assets

Answer 8

assets with a physical form

Question 9

working capital

Answer 9

amount of money available to pay day to day expenses ( current assets - current liabilities )

Question 10

balance sheet

Answer 10

financial information displaying a businesses inflows and outflows

Question 11

high quality profit

Answer 11

profit that will continue the following year

Question 12

ratio analysis

Answer 12

technique for analysing a business financial performance

Question 13

return on capital employed (ROCE)

Answer 13

compares operating profit with the amount of capital employed by the business = operating profit /(total equity + non current liabilities )x 100

Question 14

current ratio

Answer 14

how much you have to how much you owe = current assets / current laibilities

Question 15

gearing ratio

Answer 15

measures long term liquidity of a business = non current liabilities/ ( total equity + non current liabilities ) x100

Question 16

inventory turnover

Answer 16

Cost of good sold / (average inventories sold )

Question 17

receivable days

Answer 17

receivables / revenue x 365

Question 18

payables days

Answer 18

payables / cost of sales x 365

Question 19

core competencies

Answer 19

unique qualities that a business has that provide it with competitive advantage

Question 20

elkingtons triple bottom line

Answer 20

a way of thinking about a business social responsibility ( profit , people , place )

Question 21

profit ( ETL)

Answer 21

profits will help the broader community in which the business operates

Question 22

people(EKL)

Answer 22

measures the impact that a business may have on all the people involved

Question 23

planet ( EKL)

Answer 23

minimising impact on environment

Question 24

investment appraisal ( payback )

Answer 24

number of years for earnings from investment to equal original cost

Question 25

ARR

Answer 25

annual percentage return on each possible investment
total profit / No. of years = average annual profit
average annual profit / cost of investment x 100 = ARR