People Management: Ratios, Adhocracy Culture, Visionary Leadership, Knowledge Management, and Business Ethics

0Running head: PEOPLE MANAGEMENT
PEOPLE MANAGEMENT
Name of the Student
Name of the University
Author note

1PEOPLE MANAGEMENT
Table of Contents
Part A...............................................................................................................................................2
ANSWER 1 ( in S)......................................................................................................................2
Part B...............................................................................................................................................4
Question 2....................................................................................................................................4
Question 3....................................................................................................................................5
Question 4....................................................................................................................................6
Part C...............................................................................................................................................7
Question 5: Knowledge Management.........................................................................................7
Question 6: Business Ethics.........................................................................................................8
References:....................................................................................................................................10

2PEOPLE MANAGEMENT
Part A
ANSWER 1 ( in S)
A.
RATIO CALCULATION
GROSS PROFIT RATIO
=3000/10000*100= 30%
NET PROFIT RATIO
1200/10000*100=12%
OPERATING COSTS TO GROSS INCOME RATIO
100/10000*100=1%
DIRECT COSTS TO GROSS INCOME RATIO
7000/10000*100= 70%
RETURN ON ASSET
1800/10000=18%
RETURN ON EQUITY=1200/6000=20%

3PEOPLE MANAGEMENT
DEBT RATIO=4000/10000=40%
INTEREST COVER TIMES=1800/100=18
CURRENT RATIO= 1000/500=2
AGE OF DEBTORS =(400/1000) *365=146
B.
Operating performance ratios means how much the organisation is using all the resources to
generate sales and cash. The company has a good operating performance.
Profitability means how much profit percent the company is able to obtain by the sales it has
been doing. The company is generating 10 percent of the sales as profit.
Liquidity means how can the company liquidate all the assets easily or if the current assets will
be sufiicient to meet the company’s obligation. The working capital is a meaure of company;’s
working capital and the company’s working capital is 2 which is a good ratio.
C. Yes it’s a business worth purchasing as the company’s ratio are worth it and all the ratio given
are positive and working favourable for the company
D. It should be around $2000