Mission Objectives, Decisions and Performance (AQA A-Level Business): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Market capitalisation formula
Market capitalisation formula
Share price × number of shares issued
Market capitalisation
Market capitalisation
Total value of a company determined by the stock market
Dividends
Dividends
Payments made to shareholders from company profits
Capital gains
Capital gains
Profit made when share prices increase
Effect of positive profit expectations on share price
Effect of positive profit expectations on share price
Share price increases as demand for shares rises
Effect of world uncertainty on share prices
Effect of world uncertainty on share prices
Makes share prices volatile and fluctuating
Business types with less shareholder profit pressure
Business types with less shareholder profit pressure
Sole traders and private limited companies
Why PLCs often take a short-term approach to decisions
Why PLCs often take a short-term approach to decisions
Shareholder focus on profit and immediate returns
Characteristics of the external business environment
Characteristics of the external business environment
Unpredictable, uncertain, and beyond business control
What the external environment affects in businesses
What the external environment affects in businesses
Demand, costs, and operating methods