BUSS3 ratios 0.0 / 5 ? Business StudiesUnemploymentA2/A-levelAQA Created by: KathrynCreated on: 20-02-14 13:32 79832641510 Across 1. Indicates the extent to which business relies upon borrowed funds compared to equity funds (7) 4. ideally between 0.75:1 and 1:1, shows amount of liquid assets in relation to every £1 of liablities (4, 4) 5. How quickly a business can pay its creditors (8, 4) 6. acronym, indicated how much money is made by the business, compared to how much has been put in (4) 10. measures the number of times a year a business sells the value of its stocks, aims to get stockholding as low as possible (5, 8) Down 2. how quickly a business collects its debts. In general, 30 - 45 days is desirable but varies between industries (6, 4) 3. shows the annual percentage return on money needed to purchase a share - is good if its higher than rate of interest (8, 5) 7. can be reffered to as working capital ratio, should be higher than 1:1, value below 1.5:1 suggests liquidity/solvency problem (7, 5) 8. tells us how much profit a business makes per £1 on cost of sales, can be improved by increasing prices (5, 6, 6) 9. tells us amount of net profit per £1 of turnover a business has earned. Can be improved through lowering costs (3, 6, 6)
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