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Business Unit 3 > Assessing Competitiveness > Flashcards

Flashcards in Assessing Competitiveness Deck (20)
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1

Liquidity

A measurement of a firms ability to pay its short term bills

2

Cost of sales

All the costs arising from sales to customers including raw materials, supplies and packaging

3

Dividends

Regular payments to shareholders as a reward for their investment

4

Gross profit

Revenue - costs

5

Liability

A debt

6

Operating profit

Gross profit - expenses

7

Prudent

An accounting term meaning cautious

8

Reserves

A company's retained profit

9

Revenue

Value of sales made

10

Bad debts

Money owed that will never be repaid

11

Inter firm comparisons

Comparisons of financial performance between firms

12

Net realisable value

The price that can be obtained for second hand stock after deducting the selling costs

13

Profit quality

The likelihood of a source of profit continuing in the future

14

Line managers

Staff with responsibility for achieving specific objectives

15

Downsizing

Rethinking staffing number and the organizational structure as a result of fallen revenue

16

PESTLE

Political Economical Social Technological Legal Environmental

17

Disruptive change

Substantial, sudden or unpredictable change

18

Incremental change

Small, gentle change allowing a business to adapt

19

Contingency planning

Thinking through a plan b

20

Corporation tax

A tax levied as a percentage of a company's profits