Value and Limitations (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is benchmarking in financial analysis?
What is benchmarking in financial analysis?
Comparing performance vs competitors & past
Why is trend analysis particularly valuable?
Why is trend analysis particularly valuable?
Shows direction business is heading
If analysis reveals slow growth, what might managers do with dividends?
If analysis reveals slow growth, what might managers do with dividends?
Reduce dividends & retain profits
What do lenders use financial analysis to assess?
What do lenders use financial analysis to assess?
Can the business repay its debts?
What is the fundamental limitation of financial analysis?
What is the fundamental limitation of financial analysis?
Only captures numerical data
Which is an internal qualitative factor that financial analysis misses?
Which is an internal qualitative factor that financial analysis misses?
Customer satisfaction
Which external factor isn't reflected in financial statements?
Which external factor isn't reflected in financial statements?
Competitor actions
Why are financial statements described as backward-looking?
Why are financial statements described as backward-looking?
Record what has already happened
What intangible assets does the balance sheet fail to value?
What intangible assets does the balance sheet fail to value?
Staff skill & management experience
How can inflation distort the income statement?
How can inflation distort the income statement?
Rising prices distort true revenue value