Assessing Competitiveness Flashcards
(20 cards)
Liquidity
A measurement of a firms ability to pay its short term bills
Cost of sales
All the costs arising from sales to customers including raw materials, supplies and packaging
Dividends
Regular payments to shareholders as a reward for their investment
Gross profit
Revenue - costs
Liability
A debt
Operating profit
Gross profit - expenses
Prudent
An accounting term meaning cautious
Reserves
A company’s retained profit
Revenue
Value of sales made
Bad debts
Money owed that will never be repaid
Inter firm comparisons
Comparisons of financial performance between firms
Net realisable value
The price that can be obtained for second hand stock after deducting the selling costs
Profit quality
The likelihood of a source of profit continuing in the future
Line managers
Staff with responsibility for achieving specific objectives
Downsizing
Rethinking staffing number and the organizational structure as a result of fallen revenue
PESTLE
Political Economical Social Technological Legal Environmental
Disruptive change
Substantial, sudden or unpredictable change
Incremental change
Small, gentle change allowing a business to adapt
Contingency planning
Thinking through a plan b
Corporation tax
A tax levied as a percentage of a company’s profits
