Profit
What is the formula for calculating gross profit?
What is Revenue – Cost of Sales?241
When a business is attempting to fund a large volume of production with inadequate cash.
What is overtrading?pg 258
the current ration and acid test ratio are formulas to calclate what?
What is liquidity?251
A business has £100,000 in revenue and £40,000 in cost of goods sold. What is the gross profit margin?
What is 60%. pg 244
State two natural phenomena that might cause business failure.
What are weather & disease?261
the funds left over to meet day-to-day expenses after current debts have been paid.
what is working capital?pg 254
The following are examples of what?
adjust the marketing strategy; find new markets; diversify
What are ways to increase profit?242
Name two causes of internal business failure
What are Poor management of cash flow, overestimation of cash flow, overestimation of sales, overtrading, poor inventory control, poor marketing, poor quality? pg 257
What is the most liquid of all business assests.
What is cash? 253
what is the following formula used to calculate?
(net profit before tax/revenue) x 100%
what is net profit margin(profit for the year)?244
True or False. Markets are dynamic, which means they change all of the time.
What is True?
Give two ways to improve liquidity.
What is Sale of assets or leaseback, supplier credit terms, factoring, reduction of inventory? 252
the writing off of an intangible assest.
What is amoritisation? 246
the following are examples of what?
market conditions, competition, economic, exchange rates.
What are external causes of business failure?259
The ease with which assest can be converted into cash.
What is Liquidity? pg 250