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Uroos Fatima VIW…read more

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Uroos Fatima VIW
BUSINESS STUDIES
UNIT 2…read more

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Uroos Fatima VIW
BUSINESS STUDIES UNIT 2
FINANCE
Budget=-agreed plan establishing in numerical or financial terms the policy to pursued and the
anticipated outcome of that policy.…read more

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Uroos Fatima VIW
Improving cash flow
Cause of cash flow problems:
Lack of planning
Poor credit control- not checking properly who owes the business money properly
Bad debts- unpaid customers' bills that are now very unlikely to ever be paid
Allowing customers too long to pay debts
Overtrading- expending a business rapidly without obtaining all of the necessary finance so
that a cash flow shortage develops
Unexpected events- e.g.…read more

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Uroos Fatima VIW
Measuring and increasing profit
Profit= total revenue- total costs
Profit margins- the profit made as a proportion of sales revenue
Gross profit= sales revenue- variable costs
Net profit= sales revenue- total costs
If a firm's gross profit increases AND there is no increase in fixed costs then net profit will
increase too.…read more

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Uroos Fatima VIW
PEOPLE IN BUSINESS
Improving organisational structures
Organisational structure- the way the jobs, responsibilities and power within a business are
organised
Organisational chart- a diagram showing job title, lines of communication and responsibility within a
business
Levels of hierarchy- the number of layers of management and supervision existing in an organisation
Chain of command- the lines of authority within the business
Lines of communication- shows how information of passed up, down and across an organisation
Span of control- the number of subordinates, one…read more

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Uroos Fatima VIW
Workforce roles- the tasks involved in a particular level or
grade of job within an organisation
Supervisors- people who are directly responsible for one or Managers- employees who oversee the operations
more subordinate specific area of a business, they have to be confide
department as they look at resources, stock, equip
materials
Team leaders- ensure that the work load is spread fairly Directors- appointed by shareholders to oversee th
between team members, resources available and deadlines of the business or take responsibility…read more

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Uroos Fatima VIW
If problems occur then businesses can use the de-layering method to get rid of any layers businesses
don't need to save costs, increase line of communication motivate staff, or have wide span of
control
For example: if HR manager is unhappy then they should add new managers so hierarchical divides
the managers workload which increases motivation but communication decreases as chain of
command is now longer.…read more

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Uroos Fatima VIW
Give workers more responsibility so they take more pride in their work
Increase training
Change the reward system to improve motivation
Increase capacity
Absenteeism- number of working days lost as a result of an employee's deliberate or habitual
absence from work
Average number of staff absent in 1 day/ total number of staff x 100
Total number of staff absence in 1 year/ total number of staff that should have been working x
100
Improving absenteeism:
Improve pay and conditions
Modify rules…read more

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