LIKELY

• Confidence interval


  the percentage probability that an estimated range of possible values in fact includes the actual value being estimated
• Why are confidence intervals so useful in business?

  Businesses benefit from the use of statistics in estimating or predicting future events

  A confidence interval helps a business evaluate the reliability of a particular estimate

  Because no estimate can be 100% reliable, businesses need to know how confident they should be in their estimates and whether or not to act on them
• Market capitalisation


  total market value of the issued share capital of the company
• Inventory


  raw materials, work in progress, finished goods
• Why Do Businesses Hold Inventory?

  To enable production to take place

  To satisfy customer demand

  As a precaution against delays from suppliers

  To enable efficient production

  To allow a business to meet seasonal changes in demand

  To provide a buffer between different parts of a production process
• What are the Main Influences on the Quantity of Inventory Held by a Business?

  The need to satisfy customer demandThe need to manage working capitalRisk of inventory losing value
• What are the Costs to a Business of Holding Inventories?


  Cost of storage Interest costs Obsolescence risk
• Return on Capital Employed

  a business to compare operating profit with the total capital employed by the business.
• Current Ratio


  a business to explore its liquidity by comparing current assets with current liabilities.
• Gearing


  the proportion of long-term funding which comes from debt.
• Culture


  values of the business
• How is culture reflected?

  The responsiveness of communication

  The methods used for communication

  How staff call each other (e.g. first name)

  The speed with which decisions are taken

  The number of layers in the management hierarchy
• Signs of a strong organisational culture include:

  Staff understand and respond to culture

  Little need for policies and procedures

  Consistent behaviour

  Culture is embedded
• Evidence that points to a weak organisational culture include:

  Little alignment with business values

  Inconsistent behaviour

  A need for extensive bureaucracy & procedures
• Confidence interval


  thepercentage probabilitythat an estimated range of possible values in fact includes the actual value being estimated
• Why are confidence intervals so useful in business?

  Businesses benefit from the use of statistics in estimating or predicting future events

  A confidence interval helps a business evaluate the reliability of a particular estimate

  Because no estimate can be 100% reliable, businesses need to know how confident they should be in their estimates and whether or not to act on them
• Market capitalisation


  total market value of the issued share capital of the company
• Inventory


  raw materials, work in progress, finished goods
• Why Do Businesses Hold Inventory?

  To enable production to take place

  To satisfy customer demand

  As a precaution against delays from suppliers

  To enable efficient production

  To allow a business to meet seasonal changes in demand

  To provide a buffer between different parts of a production process
• What are the Main Influences on the Quantity of Inventory Held by a Business?

  The need to satisfy customer demand The need to manage working capital Risk of inventory losing value
• What are the Costs to a Business of Holding Inventories?


  Cost of storage Interest costs Obsolescence risk
• Return on Capital Employed

  a business to compare operating profit with the total capital employed by the business.
• Current Ratio


  a business to explore its liquidity by comparing current assets with current liabilities.
• Gearing


  the proportion of long-term funding which comes from debt.
• Culture


  values of the business
• How is culture reflected?

  The responsiveness of communication

  The methods used for communication

  How staff call each other (e.g. first name)

  The speed with which decisions are taken

  The number of layers in the management hierarchy
• Signs of a strong organisational culture include:

  Staff understand and respond to culture

  Little need for policies and procedures

  Consistent behaviour

  Culture is embedded
• Evidence that points to a weak organisational culture include:

  Little alignment with business values

  Inconsistent behaviour

  A need for extensive bureaucracy & procedures