3.7.3

Question 1

Earnings per share

Answer 1

Earnings per share (EPS) is calculated as a company’s profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company’s profitability. It is common for a company to report EPS that is adjusted for extraordinary items and potential share dilution.

Question 2

Mittelstand

Answer 2

Mittelstand commonly refers to a group of unique businesses in German-speaking countries that are very successful, and are usually capable of surviving economic turbulence. Generally small and medium-sized enterprises, they differ from regular SME’s. The term is used in Germany, Austria and Switzerland.

Question 3

Private equity

Answer 3

Private equity typically refers to investment funds, generally organised as limited partnerships, that buy and restructure companies.

Question 4

Audited

Answer 4

An audit is an “independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form”

Question 5

Balanced scorecard

Answer 5

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Question 6

Elkingtons triple bottom line

Answer 6

The Triple Bottom Line was a phrase introduced by John Elkington in 1994. The model highlights that business performance may be measured in a number of ways: in relation to its finances, its environmental impact and how socially responsible it is in relation to employees.

Question 7

Kaplan and Nortons balanced scorecard model

Answer 7

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