P5 unit 2 business resources p5 tesco

limitations of ratio analysis acca

This allows the company to raise large amounts of capital very quickly. This skill is very important for an accountant since as working as a group you can analysis the weakness and the strength of each person as well as their work, therefore further improvements can be made.

P5 unit 2 business resources p5 tesco

If interest rates are low then Tesco will be willing to borrow as they feel that they can afford their repayments. There are 2 types of research: Internal- This information is usually from within a business. Therefore the accountant needs verbal communication to explain his findings and how will influence the business and what they can do to improve.

The main aim of Tesco is to make profit and the reason it will make profit is because it is a well know and established company which has been trading for many years.

analyse the performance of a business using suitable ratios

Secondary: This is information that has been gathered already but not by the individual themselves. A recession is less severe than a depression. For example, a lot of clothes within the TopKidz range will be sold at For Tesco this means P1 — Describe the type of business, purpose and ownership of two contrasting businesses The first Business I have chosen is British Airways, because of my interest in travelling.

Another benefit is that consumers will be encouraged to buy from Tesco and demand for products will increase due to lower interest rates. I believe that I have relevant skills needed to be an accountant. This means that it takes company x days to collect money owed to it from goods bought on credit. I have personal skills such as team work. The difference between the assets and liabilities is known as equity or the net assets or the net worth or capital of the company and according to the counting equation, net worth must equal assets minus liabilities. This will have a positive effect for Tesco as they are able to employ more staff because of their increase in demand for their products. There are two types of market research: Primary: This is information that the person has gathered by themselves. Introduction of Tesco Tesco is a massive company with high revenues, it is also a public limited company PLC that means it has limited liability, the meaning of limited liability is that the investor cannot lose more than the amount he has invested within the company intern this means that the investor is not personally responsible for the debts of the company so linking this to Tesco it will mean that if Tesco goes into debt the investors are not responsible to pay it off. They aim to fulfil the aim of making as much money as they can and expanding the business. For example, a lot of clothes within the TopKidz range will be sold at Asda produces food and general household products and it also has a cafeteria McCafe which produces hot drinks, sweets and snacks. It can be collected through questionnaires, customer interviews, focus groups, observations and experiments. Also, if the Government increases the government spending in different sectors then Tesco will face reduction in the sales volume. Public Limited Companies PLCs must publish their accounts so investors can see how well they are doing.
Rated 8/10 based on 94 review
BTEC Business Unit 2, Busness Resources