Return On Capital Employed

(100 x Net profit)/Capital

Net Profit = 50thousand

Capital= 29thousand

ROCE = (100*29

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  • Created by: dansydes
  • Created on: 13-12-11 17:30


Return On Capital Employed

(100*Net profit)/Capital

Net Profit = 50 thousand

Capital Profit = 29 thousand

(100*50)/29 = 172.4%

Net profit is expressed as a percentage of Capital Employed

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Limited/Unlimited Liability

Limited and Unlimited Liability

Sole Traders and Partnerships have unlimited liability:

  • Endangers personal assets
  • Owners may have to sell of houses or cars to pay any debts

Limited companies have limited liability:

  • Can only go into debt as much as they invested into the company
  • Less of a risk than unlimited liabilty
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