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Flashcards in 3.5 assessing competitiveness Deck (20)
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1

what does a statement of comprehensive income show?

- revenue
- costs of sales
- gross profit
- operating profit
- tax
- net profit

2

what key information does the statement financial position show?

- non-current assets
- current assets
- current liabilities
- net current assets
- non current liabilities
- net assets
- total equity

3

what will total equity always equal to?

- net assets

4

what do we find out from a statement of financial position?

- value of a business (equity)
- the current assets they hold
- short term liabilities they need to pay
- the liquidity of a business
- long term debts
- how they've been financed

5

what is the return on capital employed (ROCE) ratio?

operating profit
----------------------- X100
capital employed

6

how can you improve ROCE ratio?

- increase operating profit
- reducing capital employed

7

formula for capital employed?

total equity + non current liabilities

8

what is the gearing ratio formula?

non-current liabilities
------------------------------- X100%
total equity + non current liabilities

9

what does the gearing ratio show?

- how a business has raised its long term finance

10

formula for labour productivity?

total output per period
--------------------------------------
number of employees at work

11

what is a disadvantage of using labour productivity as an indicator of performance?

- doesn't take into account wage rates;a key factor in employee performance
- doesn't take into account technology used
- may be affected by other factors e.g. nature of task, internal disputes

12

formula for labour turnover?

NO of staff leaving in a year
-----------------------------------------
average No of staff

13

formula for absenteeism?

No of staff absent for time period
------------------------------------------------
total employees

14

what does high level of absenteeism cause and show?

- increases cost
- indicator of demotivation or tensions

15

what are HR stategies?

- methods of motivating employees in order to increase business performance

16

what are financial rewards?

- rewards linked to performance e.g. bonus, commission
- loyalty bonuses
- attendance bonuses

17

what are types of HR strategies?

- financial rewards
- employee share ownership
- consultation strategies
- empowerment

18

what is employee share ownership?

- employees can buy shares at a fixed price and make capital gains
- if share price falls they get their total investment back

19

what is consultation strategies?

- employees will feel more involved and connected if they have an influence

20

what are empowerment strategies?

- extra training
-feedback
- communication
- offer flexible working hours
- delegate authority