Answers:
ⅠTrue or False Questions
1.T 2.T 3. F 4.F 5.T 6.T 7.T 8.F 9.T 10. F 11.T 12.F 13.T 14.F 15.F 16.F 17.T 18.F 19.T 20.F 21.T 22.F 23.F 24.F 25. T
ⅡQuestions
26. To employers: channel of communication; can highlight human resource implications of any action; provide ideas/information.
To employees: provide power; provide advice; provide services; provide protection.
27. Factors a firm can control, but which restrict its ability to achieve its objectives. Including finance, marketing, human resources and production.
28. Reasons for becoming multinational: to make use of resources abroad; to be closer to markets; to avoid legislation in their own country which may prevent firms getting too big; to gain tax advantages or grants from overseas governments; weakens of domestic unions by spreading bases around the world.
29. Advantages: Minimizes stock holding costs; Money not tied up; Focuses effort on quality as finished goods sent to customer immediately not left in stock. 30. Types of budget:
Sales budget: sets sales estimates for each product in terms of number of units. Production budget: sets output targets. Cash budget: cash flow forecast. 31.
Master budget: summaries estimated income, expenditure, and profit.
At O output fixed
Explain simply. Ⅲ Calculations
32.
Payback = 3 years
(￡50 in year 1 + ￡50 in year 2 + ￡100 in year 3) = ￡200 initial outflow ARR = 20%
Total inflows = 50+50+100+160 = ￡360 Initial cost = 200
Overall return = net inflows – initial cost = ￡360-￡200 = ￡160
Average return per year = overall return ÷ number of years = ￡160/4 = ￡40 per year
Average Rate of Return(%) = (average return per year ÷ initial cost) × 100 = (40÷200) × 100 = 20% 33.
(%)= (profit before interest and tax ÷ sales) × 100 = (￡20÷￡400) ×100 = 5%
Acid Test (number of times) = Current asset without stocks ÷ current liabilities = ￡10÷￡10 = 1 Gearing (%)= (long term liabilities ÷ capital employed) × 100 = (￡50÷￡200) ×100 = 25% Stock Turnover (number of times) = cost of sale ÷ stock = ￡300÷￡10 = 30
Answers:
ⅠTrue or False Questions
1.T 2.T 3. F 4.F 5.T 6.T 7.T 8.F 9.T 10. F 11.T 12.F 13.T 14.F 15.F 16.F 17.T 18.F 19.T 20.F 21.T 22.F 23.F 24.F 25. T
ⅡQuestions
26. To employers: channel of communication; can highlight human resource implications of any action; provide ideas/information.
To employees: provide power; provide advice; provide services; provide protection.
27. Factors a firm can control, but which restrict its ability to achieve its objectives. Including finance, marketing, human resources and production.
28. Reasons for becoming multinational: to make use of resources abroad; to be closer to markets; to avoid legislation in their own country which may prevent firms getting too big; to gain tax advantages or grants from overseas governments; weakens of domestic unions by spreading bases around the world.
29. Advantages: Minimizes stock holding costs; Money not tied up; Focuses effort on quality as finished goods sent to customer immediately not left in stock. 30. Types of budget:
Sales budget: sets sales estimates for each product in terms of number of units. Production budget: sets output targets. Cash budget: cash flow forecast. 31.
Master budget: summaries estimated income, expenditure, and profit.
At O output fixed
Explain simply. Ⅲ Calculations
32.
Payback = 3 years
(￡50 in year 1 + ￡50 in year 2 + ￡100 in year 3) = ￡200 initial outflow ARR = 20%
Total inflows = 50+50+100+160 = ￡360 Initial cost = 200
Overall return = net inflows – initial cost = ￡360-￡200 = ￡160
Average return per year = overall return ÷ number of years = ￡160/4 = ￡40 per year
Average Rate of Return(%) = (average return per year ÷ initial cost) × 100 = (40÷200) × 100 = 20% 33.
(%)= (profit before interest and tax ÷ sales) × 100 = (￡20÷￡400) ×100 = 5%
Acid Test (number of times) = Current asset without stocks ÷ current liabilities = ￡10÷￡10 = 1 Gearing (%)= (long term liabilities ÷ capital employed) × 100 = (￡50÷￡200) ×100 = 25% Stock Turnover (number of times) = cost of sale ÷ stock = ￡300÷￡10 = 30