Financial Maths
2:1
What is the ideal rate for Current Ratio?
Meeting the needs and wants of customers
What is customers satisfaction?
Improved Market Share
What is one of the marketing objectives?
Current ratio is the measure of which objective?
Liquidity
As output increases the cost per unit of input decreases
What is economies of scale?
Expenses/Sales x 100
What is the formula for the Expense Ratio
Ethical behaviour of business which ensures that they are being environmentally sustainable.
What is corporate social responsibility?
Where a business prices their product at the highest possible price.
What is price skimming?
The most flexible source of short term finance.
What is an overdraft?
How a business changes their product to gain competitive advantage
What is product differentiation?
Sales 100 000
COGS 50 000
Net Profit 10 000
What is Expenses?
40 000
The function responsible for managing finances and sourcing funds for the business
What is finance?
When a person is influenced by their peers, family and cultural background when purchasing a product.
What is the socio-cultural influence?
A financial institution where businesses can borrow money from people's compulsory retirement funds
What is a Superannuation company?
Where a business minimises costs.
What is cost leadership?
Current Assets: 350 000
Non Current Assets: 550 000
Current Liabilities: 200 000
Non Current Liabilities: 350 000
Calculate the current ratio.
1.75:1
Two or more companies are merged into one.
What is a merger or a takeover?
When a customer of a clothing store sees the same sales representative when they are buying a product.
What is personal selling?
Where a business sells an asset for cash injection but borrows it back from the new business.
What is sale and lease back?
The integration of countries through trade.
What is globalisation?
Sales: 850 000
Account receivable: 35 000
Calculate accounts receivable turnover in days
The term used when an economy is going down.
What is a recession?
The different stages that a product goes through.
What is the product lifecycle?
Where a business enters into a contract where they will exchange one currency for another on a set date with a fixed rate.
What is a forward exchange contract?
Customer expectations about implied conditions
What is quality expectations?
Current Assets: $30 000
Current Liabilities: $15 000
Non Current Assets: $150 000
Non Current Liabilities: $120 000
Calculate the Gearing Ratio:
3:1 or 300%
Protecting the environment and resources for future generation.
What is sustainability?
Cigarettes are an example of this.
What are products that damage health?
Where a business removes a sale of an asset from the income statement.
What is normalised earnings?
A business has decided to produce organic products using environmentally friendly inputs. This is an example of what influence
What is environmental sustainability?