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What kind of business would you like to start?
This would be a question you would ask yourself if you were interested in starting a new business or opening up your own business. Depending on your interests or things you enjoy that would help narrow down what type of business you could start.
Why are customers interested in the success of the business?
If a customer places an order with a business, the customer would rather that business was so successful that they would not go into administration, but produce and deliver the products the customer had originally ordered.
Describe the five question approach to using financial ratios?
Leverage Financial Ratios Those financial ratios that show the percentage of a company's capital structure that is made up on debt or liabilities owed to external parties Liquidity Financial Ratios Those financial ratios that show the solvency of a company based on its assets versus its liabilities. In other words, it lets you know the resources available for a firm to use in order to pay its bills, keep the lights on, and pay the staff. Operating Financial Ratios These financial ratios show the efficiency of management and a company's operations in utilizing its capital. In the retail industry, this would include metrics such as inventory turnover,accounts receivable turnover, etc. Profitability Financial Ratios These financial ratios measure the return earned on a company's capital and the financial cushion relative to each dollar of sales. A firm that has high gross profit margins, for instance, is going to be much harder to put out of business when the economy turns down than one that has razor-thin margins. Likewise, a company with high returns on capital, even with smaller margins, is going to have a better chance of survival because it is so much more profitable relative to the shareholders' contributed investment. Solvency Financial Ratios These financial ratios tell you the chances of a company going bankrupt. There's really no elegant way to say that. The whole point of calculating them is to make sure that a company isn't in danger of going under anytime soon.
What are stakeholders?
A stakeholder in a business is anyone that has an interest of some kind in the business.In a school, some of the main stakeholders would be Pupils, Employees, the Government, the Local community. The pupils main interest is to get a good education, the employees would be interested in getting the best out of pupils and passing on knowledge. Things like traffic,litter an house prices may concern the local community so they would be interested in this as well as being interested in the benefits such as employment.Stakeholders include:Financers for a business would be interested in getting money back that they are owed with a good profit gained.Customers in a business are interested in benefiting from services/goods.Suppliers want to get a good price for their supplies but need to be at a competitive price to make customers buy from them. They want also to sell large quantities of stock with further orders.The local Community are concerned with the way the business affects them. e.g traffic problems could occur.Employees are interested in getting a good regular wage with job security.Owners want to make a profit to get a good return on their investment.
Effects of bad debts on bank's profitability?
Bad Debts usually have a negative effect on a banks balance sheet and profitability. Bad Debt stands for loans that are granted to customers who would not repay them back. These are losses for the bank and hence all this money features as loss in the banks accounts which in turn reduces the banks profitability.
Which of the following ratios would tell an investor about the profitability of the organization?
a propretary ratio
A short-term creditor would be most interested in?
profitability
Who would be interested in a business?
i almost graduate, very interested in business
What are some topics for feasibility studies for a business major?
One topic for feasibility studies for a business major would be a business plan. Along with that, discussing profitability would be beneficial.
If you divide users of ratios into short term lenders long term lenders and stockholders which ratios would each group be most interested in?
free cashflow
Why would a business be interested in sponsoring a bowl game?
The business would get a lot of advertisement through it.
What is customer profitability all about?
Customer profitability is a phrase that describes a type of business outlook. It is the theory that if one has returning customers, the profits made by them would make up for the extra expenses put into making the customers' experience good.
What would most likely result in an entrepreneur improving the profitability of his or her business?
The entrepreneur comes up with a more efficient way to make products.
Would most likely result in an entrepreneur improving the profitability of his or her business?
The entrepreneur comes up with a more efficient way to make products.
Why are financial ratios used to assess a companys financial performance?
Financial ratios are usually done at the beginning of every fiscal year within the organization and goals are set in order to maximize profitability. These ratios are reevaluated and looked at usually every quarter to determine how business is running within the organization. Without the financial ratios, it would be difficult for organizations to determine if they are running their operations efficiently. If the numbers are not matching up between 'the planned ratio' and 'the actual ratio' then the organization will need to take a closer look into the operations of less successful stores.
How do you open a business franchise?
To open a business you will first need to obtain a business license. Then you would have to obtain a space and then purchase the franchise that you are interested in.
Is there any money to be made in pig farming these days?
The profitability rests first with the business acumen of the farmer. Larger operations are more profitable because of the purchasing power, however, they also cost more to run, of course, which is why business sense is key. Pork is a traded commodity so profitability would also depend on the market.
