Download PDF by Ian Marcouse; Marie Brewer; Andrew Hammond: AQA Business Studies for AS : Revision Guide

By Ian Marcouse; Marie Brewer; Andrew Hammond

ISBN-10: 1444127853

ISBN-13: 9781444127850

This e-book has been written for AQA examination luck. greater than simply as aide to reminiscence, it selections out the foremost wisdom you would like for the AS examinations, indicates you the way to use your wisdom to the enterprise context after which demonstrates how this is built into an evaluate. quite a few perform questions written to AQA AS regular are integrated, and all have solutions within the again that can assist you revise on your own or with Read more...

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Extra info for AQA Business Studies for AS : Revision Guide

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6) 37 Unit 18 Measuring and increasing profit What? Calculation 2: Return on capital Unit 11 introduced the concept of profit as the amount of revenue left over once all costs have been deducted. This unit introduces two new measurements that allow judgements to be made about a firm’s profits. Formula Net profit × 100 Capital invested Meaning Calculation 1: Net profit margin Formula Net profit × 100 Sales revenue This financial ratio states the return an investor receives as a percentage of what they invest.

How are budgets set? ● Incremental budgeting – adding a certain percentage on to last year’s budget to allow for inflation. ● Zero budgeting – setting each budget to zero at the start of each year and asking each budget holder Setting budgets Three sets of financial targets will usually be set within a business. These cover income, expenditure and profit. The income budget (Table 14A) shows how many units of a product should be sold and at what price. For a shop, this could translate to how many customers buy and what is their average spend.

Making a profit Who? What? Cash flow is more often a problem for small firms than for larger organisations. The immediacy of cash flow problems for a small firm is great – if the wages are not paid, no one turns up for work next week. However, even the very largest firms can fall victim to cash flow problems (as Woolworth’s did in 2008). Those that over-borrow in order to finance growth will find heavy interest payments a substantial drain on cash flow. Any business featured in an exam question will be concerned with the amount of profit it generates.

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AQA Business Studies for AS : Revision Guide by Ian Marcouse; Marie Brewer; Andrew Hammond


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