Qualification > Commerce

Any Business Studies doubts HERE!:)

<< < (6/7) > >>

Anonymous:
Profit margin is the profit as a percentage of the total SR. It isn't a liquidity ratio. Rather, it is a measure of performance of the business. By the way, when are you doing the exam?

angell:
Trade credit is when the business delays paying its suppliers. So the money it doesnt pay stays within the business, increasing the cash available. However, the more the business delays, the more chances there are of the suppliers refusing to supply further and they cannot avail the facility of cash discounts/reductions due to prompt payment.




When a business ceases to trade, the shareholders would only lose the amount they had originally invested into the business. Since the plc has limited liability, the shareholders or owners of the business cannot be held responsible for any debts of the business, hence securing their personal assets.

angell:
Yup anon ur rite....liquidity ratios are only quick ratio and acid test ratio.
the others are PERFORMANCE ratios...

anusha500:
is marketing budget and advertising budget the same? =S

so how is profit high but profit margin low?

Anonymous:
They are both financial documents specifying the allocation of capital. However, an advertising budget only states the expenditure on advertising, whilst the marketing budget might split the capital between the different element of the marketing mix.

Navigation

[0] Message Index

[#] Next page

[*] Previous page