Financial Maths
A = L + OE
What is the accounting equation?
This term refers to the process of transforming inputs into outputs in a business.
What is Operations
This term refers to the unique combination of product, price, place, and promotion strategies used to market a product.
What is the marketing mix?
This source of finance refers to funds generated from the business's operations rather than external borrowing.
What is internal finance?
This HRM process involves recruiting, selecting, and onboarding new employees to fill job vacancies.
What is acquisition?
Sales $500 000
Cost of Goods Sold $250 000
What is Gross Profit?
$250 000
This strategy involves minimizing waste and reducing costs in production while maintaining quality.
What is cost leadership?
This element of the marketing mix refers to the strategies used to create awareness and interest in a product or service.
What is promotion?
This ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
What is the current ratio?
This HRM function involves providing employees with the necessary skills and knowledge to perform their job effectively and advance in their careers.
What is development?
Current Assets: 650 000
Current Liabilities: 350 000
Calculate the current ratio.
1.86:1
This operations management approach ensures that all processes meet customer expectations and legal requirements.
What is quality management?
This strategy involves differentiating a product by emphasizing its unique features or benefits compared to competitors.
What is product differentiation?
This type of financial statement shows a company's financial position at a specific point in time, listing assets, liabilities, and equity.
What is a Balance Sheet?
This type of employee feedback system involves regular discussions between employees and managers to assess performance and set goals.
What is performance apprasials?
Current Liabilities: $50 000
Non Current Liabilities: $350 000
Owners Equity: $685 000
Calculate Debt to Equity Ratio.
0.58:1 or 58.39%
This method of production involves customizing goods and services to meet the specific needs of individual customers.
What is mass customisation?
This process involves gathering, analyzing, and interpreting information about a market to inform business decisions.
What is market research?
These financial strategies focus on cost control and revenue control.
What is profitability management strategies?
This legal requirement ensures that employees are treated fairly and equitably without discrimination based on gender, race, or other protected characteristics.
What is Equal Employment Opportunity?
Sales: 250 000
Accounts Receivable: 35 000
Calculate the accounts receivable turnover in days.
51 days
This KPI measures the ratio of outputs produced to the inputs used in production.
What is productivity?
This marketing strategy involves dividing a market into distinct groups of buyers with different needs or characteristics.
What is market segmentation?
A business sells their accounts receivable to another company to get an instant inflow of cash.
What is factoring?
The minimum standards that must be included in every employment contract.
What is the national employment standards?
Sales: $450 000
Cost of Goods Sold: $150 000
Expenses: $100 000
Calculate Net Profit Ratio:
0.44:1 or 44%
Contracting another business to manufacture your goods.
What is outsourcing?
This pricing strategy involves setting a high price initially and then gradually lowering it over time.
What is price skimming?
This global financial strategy involves minimizing the risk of currency fluctuations by using contracts to lock in exchange rates for future transactions.
What is hedging?
An employee has made a complaint about their supervisor and the owner has organised a meeting for the two of them to come to a resolution on their own.
What is negotiation?
Gross Profit Ratio: 50%
Gross Profit: $350 000
Expenses: $75 000
Calculate Net Profit Ratio
39.29%
This tool, often represented by a network diagram, is used to identify the longest sequence of tasks in a project, determining the shortest possible project duration.
What is critical path analysis?
This marketing approach focuses on creating value and satisfying customer needs through product development and service.
What is the marketing approach?
A business has taken out the profit from the sale of their vacant factory out of their income statement to show the true financial performance from operations.
What is normalised earnings?
The business values and ethics that guides employers and employees with their decision making.
What is corporate culture?