business growth / loss Flashcards
(19 cards)
what does kpi stand for
key performance indicators
what is organic business growth
- from inside the company
- new products / services..
what is inorganic business growth
growth from outside the company
what is turnover
the number of sales over a period of time
what are the 8 types of business risks
- financial
- reputation
- strategic
- fraud
- security
- operational
- economical
- compliance
what are service level agreements
agreements decided between the employees and employer. they decide the service that will be provided and what will be done
what are merits, what could they be used for and give an example?
things you need to keep track of within the business, could be used to:
- comply with legislation
- plan day to day activities
- identify when its time to reorder stock
examples:
- number of calls
- number of social media interactions
- number of emails
give 5 types of kpi
- sales
- operational
- financial
- customer
- marketing
what costs may complying with legislation create
- providing warranties
- quality assurance procedures
- supplying training
- higher wages
- employing more staff
- product testing
what are the positives of a business working ethically and within the law
- employee retention increased
- employees work harder
- strong brand image - reputation
- higher sales = less returns
- less chance or reason of being sued
what could happen if a business fails to comply with legislation
- fines
- imprisonment
- bad reputation
- less staff
what could happen to businesses if they do not meet quality standards
- financial risk
- reputational risk
what is gross profit
amount left after subtracting costs of creating the goods / services from the revenue
what is net profit
amount left after subtracting all other expenses
what is turnover
amount of money taken over a period of time
what is equity in terms of finance
amount of money back from assets once debts / liabilities have been paid back
what is profit margin
what percentage of total revenue or induvidual product / service the business keeps as profit
what is the equation for gross profit margin
(net sales - cost of goods) / net sales x 100
what is liquidity
how quickly and easily you can turn your assets into cash when you need it, high liquidity = easy, low liquidity = difficult
