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Chapters 26, 27, and 28

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Black arab Galadima
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60 views

Chapters 26, 27, and 28

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Black arab Galadima
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Analysis of Accounts Capital Employed Equity *Non-Current Liabilities Liguid ty: A tol i tabi P pro it Relum on Capital Employed Net Profit Cesul!) cents of net probit were made Por each $1 invested Capital Emplgel 100} Ces! , = " Gross Profit Nagi in Gross ProPit 49 (result) conds of Revenue, P ges polit earned on every $1. of goods Nek Profit Margin Net Profit qc (result) cords 0 net pisit earned on every $1. of goods Revenue. liquid: Assets ave. not easily conetible into cash Current Ratios Curent Assels | dea! Ratio: 1.5 Current Liabilities Acid Test Ratio Cuttent Assels -Inventries| Ten! Ratio: 1:4 Current Liabilities 2imni tations * Exte oftly have access 4o published a % Ratios only show pest performance % Different accounting methods * Accoutng deta i fected by inflation § Anflation: the incresse in the oug prices ot goods Bevis owt time le are w: A able to work rowth: When al VesseS — more. c Tf ' ort Real Inceme: achial velne of income D Rapid Tit lation Problems: *Real incomes. fll Prices of local ecome hight that ie, $0 uy Foreign goods + Bucinase unlikely +o expand 2 High Unemplyment problems > Total output of country becomes lower than it could be * Government has + Pa} Y ts + wu ] Sow GDP Problems * jorkers Needed, So hi it * Lower_living standards x Basi Exports: Goods sold to other | Inmporls: Goods bought Prom other countries * Less sales Por businase selling luauty-ptoduch * posal) me —m Less sales —p> 5 lod ction —> employment IT nerease in Profits “Tax Lower profits far bucineses—w Halder to expanh * Less money Paid back 40 owners —® Share prices Pal! OJ nerense in Indirect Taxes ¥ Prices of Pose # Real inones. decline —p Business under pressure +o raise unges— Higher casts I ; nani nport Quota: Limon the oncunt of a ploduct that can be impeded oF Fhect of Tarif Imported goods become mate ex pensive —P Local_basiesges. benefit * Other couflries may take jhe sane actin (te elation) —> Exparding bisines sales detase A Quotas can be wehto ptolect industries Prom Poreign compelition thd can damage employment * Cirms wi 40° py f, t #M niki rw a I. b % Encontas | i | igh re a lo vise, i m Inceabe goverment Switch marketing strategy to gain ore Maybe reat competition other busnesces spending | puble-rector conractee'g building or take samo action _Seuiping schon and heepale | BE 4 TTcreassincome tax Lowerprice n existing products to Less profit bemade oneachitem sold | his reduces the amount increase demand | Iredueos gross profit margil | _Tmumersmeiosins pace cape ratusteatowlr Te tandimage tapos mah bedanages | ee lower pics [by using cheapor versions ofit Eee "Inceastaris imports Focus more onthe domestic mare a might be mor prftabietw expert : teclly pred goods now sem cheaper | reign materials and companents might be of | | | Switch from buying imported materials and higher quality | L _ components to localy produced ones | “ceaseintrest rates Reduce invest so future growth wilbe Other companies migh sil ow se market = | Seresoneetat | | Develop cheaper product that consumers | Depends nthe praduct but could consumers start | vallbe better able fo afford “roth atthe quay andbrnderage are ver? L Soot rash oad ontigant_| Thee might Be eed rare ann L soli Environmental & Fthical Issues i i ¢ I ! al Cos Private. C Social Benelit: External Benefits + Internal Beneb ils Sust ihab i} | il Lay uve ions. 5 How 4 toihabl ent? * C25 * Deielop environmentally Priendly products ond production methods esure 0 1 4 it jenn certait policies a 4 do 4 | | o Pressure Grraups are less effective shen H Ihab the firm is doing is unpopular but legal * (ost of changing is greater shan_cost of pont itmag + Business sells to other business U/ Purple Byte 4.42 PurpleByte #4242

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