Acid ratio test definition
current assets - inventory / current liabilities
Assets definition
valuable things that a business can use
Capital definition
cash put into the business by the owner
Current assets definition
liquid assets those assets that will be converted into cash within 12 months
e.g inventories trade receivables and cash
Current liabilities definition
debts owed by a business that must be repaid within one year
Current ratio definition
current assets / current liabilities
Liabilities definition
debts owed by a business to lenders and suppliers
Liquidity definition
the ability to pay bills in cash when they fall due or the ability to meet current liabilities with current assets
Net asset definition
total assets - total liabilities
Non current asset definition
long term resources that will be used by the business for more than one year
e.g property and equipment
Non current liabilities definition
debts owed by the business for more than one year
Shareholder equity definition
the value of the shareholders investment in a business
Statement of financial position definition
a summary at a particular point in time of the value of a firms assets liabilities and equity
Total equity definition
share capital + retained profit or owners capital + retained profit less drawings
Working capital definition
the amount of cash available to pay for the day to day trading of a business or current assets - current liabilities
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Exam Techniques6
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Formulas27
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The Market(1.1.1)31
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Key terms (1.1.1)18
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Market Research(1.1.2)32
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Key terms (1.1.2)25
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Market Positioning(1.1.3)15
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Key terms (1.1.3)6
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Demand(1.2.1)12
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Key terms (1.2.1)7
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Supply(1.2.2)12
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Key terms (1.2.2)3
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Markets(1.2.3)1
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Key terms (1.2.3)4
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Price Elasticity of Demand-PED(1.2.4)16
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Key terms (1.2.4)5
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Income Elasticity of Demand-YED(1.2.5)15
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Key terms (1.2.5)2
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Product or Service Design(1.3.1)18
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Key terms(1.3.1)12
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Branding and Promotion(1.3.2)23
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Key terms(1.3.2)16
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Pricing Strategies(1.3.3)31
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Key terms(1.3.3)8
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Distribution(1.3.4)26
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Key terms(1.3.4)11
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Marketing startegy(1.3.5)31
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Key terms(1.3.5)10
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Approaches to staffing(1.4.1)28
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Key terms(1.4.1)11
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Recruitment selection and training(1.4.2)27
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Key terms(1.4.2)7
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Organisational design(1.4.3)20
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Key terms(1.4.3)9
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Motivation and theory in practice(1.4.4)15
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Key terms(1.4.4)22
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Leadership(1.4.5)20
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Key terms(1.4.5)6
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Role of an entrepreneur(1.5.1)10
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Key terms(1.5.1)4
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Entrepreneurial motives and characteristics(1.5.2)9
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Key terms(1.5.2)7
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Business objectives(1.5.3)10
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Key terms(1.5.3)9
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Forms of business(1.5.4)24
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Key terms(1.5.4)9
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Business choices(1.5.5)5
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Key terms(1.5.5)2
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Entrepreneur to leader(1.5.6)10
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Key terms(1.5.6)1
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Internal finance(2.1.1)15
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Key terms(2.1.1)5
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External finance(2.1.2)44
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Key terms(2.1.2)12
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Liability(2.1.3)7
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Key terms(2.1.3)3
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Planning(2.1.4)10
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Key terms(2.1.4)8
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Sales forecasting(2.2.1)16
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Key terms(2.2.1)3
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Sales revenue and costs(2.2.2)14
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Key terms(2.2.2)6
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Break even(2.2.3)7
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Key terms(2.2.3)3
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Budgeting(2.2.4)18
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Key terms (2.2.4)6
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Profit (2.3.1)26
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Key terms (2.3.1)12
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Liquidity(2.3.2)15
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Key terms(2.3.2)15
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Business failure(2.3.3)15
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Key terms (2.3.3)5
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Production and productivity(2.4.1)38
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Key terms(2.4.1)9
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Capacity utilisation(2.4.2)10
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Key terms(2.4.2)5
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Stock control(2.4.3)20
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Key terms(2.4.3)12
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Quality management(2.4.4)16
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Key terms(2.4.4)7
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Economic influences(2.5.1)34
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Key terms(2.5.1)16
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Legislation(2.5.2)21
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Key terms(2.5.2)8
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Competitive environment(2.5.3)4
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Key terms(2.5.3)1
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Corporate objectives (3.1.1)8
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Key terms (3.1.1)4
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Theories of corporate strategy (3.1.2)25
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Key terms (3.1.2)12
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SWOT analysis (3.1.3)4
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Key terms (3.1.3)1
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Impact of external influences (3.1.4)37
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Key terms (3.1.4)6
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Growth (3.2.1)28
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Key terms (3.2.1)10
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Mergers and takeovers (3.2.2)29
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Key terms (3.2.2)4
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Organic growth (3.2.3)15
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Key terms (3.2.3)2
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Reasons for staying small (3.2.4)12
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Key terms (3.2.4)1
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Quantitative sales forecasting (3.3.1)24
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Key terms (3.3.1)7
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Investment appraisal (3.3.2)29
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Key terms (3.3.2)5
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Decision trees (3.3.3)7
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Key terms (3.3.3)3
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Critical path analysis (3.3.4)9
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Key terms (3.3.4)6
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Corporate influences (3.4.1)24
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Key terms (3.4.1)4
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Corporate culture (3.4.2)3
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Key terms (3.4.2)0
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Shareholders vs stakeholders (3.4.3)10
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Key terms (3.4.3)0
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Business ethics (3.4.4)12
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Key terms (3.4.4)0
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Interpretation of financial statements (3.5.1)9
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Key terms (3.5.1)0
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Ratio Analysis (3.5.2)12
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Key terms (3.5.2)0
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Human resources (3.5.3)0
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Key terms (3.5.3)0
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Causes and effects of change (3.6.1)0
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Key terms (3.6.1)0
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Key factors in change (3.6.2)0
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Scenario planning (3.6.3)0
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Key terms (3.6.3)0
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Growing economies (4.1.1)0
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Key terms (4.1.1)0
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International trade and business growth (4.1.2)0
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Key terms (4.1.2)0
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Factors contributing to increased globalisation (4.1.3)0
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Key terms (4.1.3)0
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Protectionism (4.1.4)0
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Key terms (4.1.4)0
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Trading blocs (4.1.5)0
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Key terms (4.1.5)0
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Conditions that prompt trade (4.2.1)0
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Key terms (4.2.1)0
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Assessment of a country as a market (4.2.2)0
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Key terms (4.2.2)0
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Assessment of a country as a production location (4.2.3)0
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Key terms (4.2.3)0
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Reasons for global mergers or joint ventures (4.2.4)0
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Key terms (4.2.4)0
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Global competitiveness (4.2.5)16
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Key terms (4.2.5)0
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Marketing (4.3.1)0
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Key terms (4.3.1)0
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Niche markets (4.3.2)0
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Key terms (4.3.2)0
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Cultural/social factors (4.3.3)1
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Key terms (4.3.3)0
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The impact of MNCs (4.4.1)0
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Key terms (4.4.1)0
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Ethics (4.4.2)0
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Key terms (4.4.2)0
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Controlling MNCs (4.4.3)0
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Key terms (4.4.3)0
