Business Resources and Financial Analysis: Hendy's Ltd Report
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This report provides a comprehensive analysis of business resources, focusing on Hendy's Ltd, an automotive dealer. It begins by examining recruitment documentation, including job adverts, descriptions, and person specifications, as well as the communication, employability, and personal skills essential for various job roles, particularly sales. The report then delves into the physical and technological resources required for operations, highlighting human resources, buildings, and technological tools. Furthermore, it explores sources of both external and internal finance, such as bank loans, hire purchases, retained earnings, and sales of fixed assets. The analysis extends to interpreting trading, profit and loss accounts, and balance sheets, along with the use of budgets for financial control and the overall financial state of the company, providing valuable insights into its financial performance and management strategies. This report is a valuable resource for understanding the application of business principles in a real-world context.
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BUSINESS
RESOURCES
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Recruitment documentation used in an organisation..............................................................1
P2 Communication , Employability and Personal skills..............................................................2
TASK 2............................................................................................................................................3
P3 Description of main physical and technological resources required in the operation............3
TASK 3............................................................................................................................................4
P4 Sources of external and internal finance................................................................................4
P5 Interpretation of trading and profit and loss account and balance sheet.................................5
P6 Uses of a budgets as a means of exercising financial control.................................................7
P7 Financial state.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Recruitment documentation used in an organisation..............................................................1
P2 Communication , Employability and Personal skills..............................................................2
TASK 2............................................................................................................................................3
P3 Description of main physical and technological resources required in the operation............3
TASK 3............................................................................................................................................4
P4 Sources of external and internal finance................................................................................4
P5 Interpretation of trading and profit and loss account and balance sheet.................................5
P6 Uses of a budgets as a means of exercising financial control.................................................7
P7 Financial state.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business resources are the resources which are known as the factors of production which
consist of labour and land, enterprise and capital. Labour means the human resources which
includes all the individual which are required by company to generate its revenue. Land is a
natural resources which give the raw material required for various components such as buildings,
transport, mechanisms and machinery. This report contains the detailed analysis of Hendy's Ltd
which describe the documents which are used in recruitment process. Hendy's Ltd is an
automotive dealer which deals in both used and new vehicles. It also provides various service
plans, accessories, accident repairs and tires. This report describes the main employability,
communication and personal skill required for a specific job role. It describes the main physical
and technological resources and various sources which are required by a business.
TASK1
P1 Recruitment documentation used in an organisation
Job Advert: Hendy's Ltd prepare the job analysis before making job adverts. It is
considered as one of the most important part of recruitment process, as it helps companies to
identify the vacant position in the company and the type of candidate which could be essential
for the organisation in order to achieve its organisational goal (Noe and et.al., 2017). it is
important for a company to perform job analysis, as it provides an in depth knowledge of the
various responsibilities, task, soft skills and skills which are required in a candidate to perform
its job successfully. Hendy's Ltd prepare job advert for the position of sales representative.
Job Description: Job description is a document which is prepared by the companies
which states the complete job roles and responsibilities which a candidate has to perform in a
specific job. This document also includes the minimum experience required by a candidate and
various other eligibility criteria required by for a specific job. It is important for Hendy's Ltd to
prepare job description as it define complete role of a job for which a position is vacant.
Person Specification: Person specification is description which states the minimum
qualification, experience, knowledge, skills and other attributes which must be possessed by a
candidate in order to perform the job duties. It is important for Hendy's Ltd to provide person
specification as it provide the minimum standard which an individual must possess.
1
Business resources are the resources which are known as the factors of production which
consist of labour and land, enterprise and capital. Labour means the human resources which
includes all the individual which are required by company to generate its revenue. Land is a
natural resources which give the raw material required for various components such as buildings,
transport, mechanisms and machinery. This report contains the detailed analysis of Hendy's Ltd
which describe the documents which are used in recruitment process. Hendy's Ltd is an
automotive dealer which deals in both used and new vehicles. It also provides various service
plans, accessories, accident repairs and tires. This report describes the main employability,
communication and personal skill required for a specific job role. It describes the main physical
and technological resources and various sources which are required by a business.
TASK1
P1 Recruitment documentation used in an organisation
Job Advert: Hendy's Ltd prepare the job analysis before making job adverts. It is
considered as one of the most important part of recruitment process, as it helps companies to
identify the vacant position in the company and the type of candidate which could be essential
for the organisation in order to achieve its organisational goal (Noe and et.al., 2017). it is
important for a company to perform job analysis, as it provides an in depth knowledge of the
various responsibilities, task, soft skills and skills which are required in a candidate to perform
its job successfully. Hendy's Ltd prepare job advert for the position of sales representative.
Job Description: Job description is a document which is prepared by the companies
which states the complete job roles and responsibilities which a candidate has to perform in a
specific job. This document also includes the minimum experience required by a candidate and
various other eligibility criteria required by for a specific job. It is important for Hendy's Ltd to
prepare job description as it define complete role of a job for which a position is vacant.
Person Specification: Person specification is description which states the minimum
qualification, experience, knowledge, skills and other attributes which must be possessed by a
candidate in order to perform the job duties. It is important for Hendy's Ltd to provide person
specification as it provide the minimum standard which an individual must possess.
1

Application form: Application form is a form which is provided to the interested
candidates in which they provide their personal details. It is important for company to provide
the application form as it helps HR managers to sort out the interested candidates from other
candidates.
P2 Communication , Employability and Personal skills
Communication Skills: It is skills which helps the employees to communicate easily
with his seniors, subordinates, staff and colleagues (Anderson, 2013). It is an important for a
candidate applying for a sale job to have good communication skills as they have to
communicate about the companies product to it customers to bring in the sale and generate
revenue for the company. It is important for a candidate to have a good personal skill while
applying for the job of sales representative as communication is the most important skill which is
2
candidates in which they provide their personal details. It is important for company to provide
the application form as it helps HR managers to sort out the interested candidates from other
candidates.
P2 Communication , Employability and Personal skills
Communication Skills: It is skills which helps the employees to communicate easily
with his seniors, subordinates, staff and colleagues (Anderson, 2013). It is an important for a
candidate applying for a sale job to have good communication skills as they have to
communicate about the companies product to it customers to bring in the sale and generate
revenue for the company. It is important for a candidate to have a good personal skill while
applying for the job of sales representative as communication is the most important skill which is
2
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required in order to bring sales and engage its customers. There are basically two types of skills
such as verbal in which one person talks to other person.
Employability Skills: Employability skills are the behaviours and set of skills which are
required by an individual in every job. This skill includes the level of qualification which is
expected by an individual while applying for a specific job such as formal qualification. For
example if a company wants a finance manager than the candidates applying for this position
must have a MBA in finance specialisation.
Personal Skills: Personal skills are the skills which defines an individual ability which
help them to achieve its desired goal. These personal skills are basically developed or acquired
by various trainings and direct experience. It is important for a candidate applying for a specific
position should posses these personal skill. Following are the personal skills:
Soft skills: Soft skills include the skills such as listening, communication, and
interpersonal skill. It is important for a candidate applying for the job of sales officer to
posses these soft skills as it is very important to communicate with the customers in order
to generate revenue.
Hard skills: Hard skills are required by an individual applying for the position of sales
officer as these skills include reading skills, writing skills.s
TASK 2
P3 Description of main physical and technological resources required in the operation
Physical resources: Physical resources include the resources which are physically
present in an organisation to support its operations. Physical resources includes human resources,
building and machinery (Quinlan and et.al., 2019). It is resources which are used by a business to
provides it product and services. Following are the two most common physical resources:
Human Resources: Human resources are the most important physical resources required
in an organisation, as they conduct its business operations in an effective manner. In
Hendy's Ltd there are more than approx 4500 employees working in an effective manner
to provide its product and services.
Building and Facilities: Building and facility is a place from where a company performs
its business operations. Hendy's Ltd has its stores spread over United Kingdom to
provide its service and product to its customers.
3
such as verbal in which one person talks to other person.
Employability Skills: Employability skills are the behaviours and set of skills which are
required by an individual in every job. This skill includes the level of qualification which is
expected by an individual while applying for a specific job such as formal qualification. For
example if a company wants a finance manager than the candidates applying for this position
must have a MBA in finance specialisation.
Personal Skills: Personal skills are the skills which defines an individual ability which
help them to achieve its desired goal. These personal skills are basically developed or acquired
by various trainings and direct experience. It is important for a candidate applying for a specific
position should posses these personal skill. Following are the personal skills:
Soft skills: Soft skills include the skills such as listening, communication, and
interpersonal skill. It is important for a candidate applying for the job of sales officer to
posses these soft skills as it is very important to communicate with the customers in order
to generate revenue.
Hard skills: Hard skills are required by an individual applying for the position of sales
officer as these skills include reading skills, writing skills.s
TASK 2
P3 Description of main physical and technological resources required in the operation
Physical resources: Physical resources include the resources which are physically
present in an organisation to support its operations. Physical resources includes human resources,
building and machinery (Quinlan and et.al., 2019). It is resources which are used by a business to
provides it product and services. Following are the two most common physical resources:
Human Resources: Human resources are the most important physical resources required
in an organisation, as they conduct its business operations in an effective manner. In
Hendy's Ltd there are more than approx 4500 employees working in an effective manner
to provide its product and services.
Building and Facilities: Building and facility is a place from where a company performs
its business operations. Hendy's Ltd has its stores spread over United Kingdom to
provide its service and product to its customers.
3

Technological resources: Technological resources are the resources which are intangible
in nature and includes intellectual properties, software license, patents, experience and
accumulated skills. These resource helps the company to improve its business efficiency and
achieve its organisational goal. Following are some commonly used technological resources:
Computer based resources: It is a resources which helps companies to organise its
business in an effective manner which helps in achieving its organisational goal and
improve its operational efficiency (Audi, 2012).
Maintenance and security: In order to provide best experience company provide various
maintenance and secure the data of its computer by implementing various security
software.
In Hendy's Ltd company implement both physical resources and technological resources
which help company to achieve its organisational goal and improve its financial statements.
These technological resources help company to increase its operational efficiency and provide its
customers the best services.
TASK 3
P4 Sources of external and internal finance
It is important for a business to have finance in order to support its operations as finance
is the most important resources which is required by business. Company can take finance from
various sources such as follows:
External Sources: External sources are the sources in which company raises its fund
through various sources outside the business. Following are the various external sources from
where a business can raise its funds:
Bank Loan: Bank loans are the most common sources through which a company can
raise its funds. Hendy's Ltd also raise its fund through various bank loans which attracts only the
interest which is applicable to the principle amount (Rashid and et.al., 2013). Following are the
various advantages and disadvantages of it:
Advantages: Bank loans are flexible in which company has to only worry about its timely
instalments. It also help companies to retain its business profit as business gives a
percentage of its profit to its shareholders, where as banks only requires to pay the
principle amount along with the interest, which help companies to retain its profit.
4
in nature and includes intellectual properties, software license, patents, experience and
accumulated skills. These resource helps the company to improve its business efficiency and
achieve its organisational goal. Following are some commonly used technological resources:
Computer based resources: It is a resources which helps companies to organise its
business in an effective manner which helps in achieving its organisational goal and
improve its operational efficiency (Audi, 2012).
Maintenance and security: In order to provide best experience company provide various
maintenance and secure the data of its computer by implementing various security
software.
In Hendy's Ltd company implement both physical resources and technological resources
which help company to achieve its organisational goal and improve its financial statements.
These technological resources help company to increase its operational efficiency and provide its
customers the best services.
TASK 3
P4 Sources of external and internal finance
It is important for a business to have finance in order to support its operations as finance
is the most important resources which is required by business. Company can take finance from
various sources such as follows:
External Sources: External sources are the sources in which company raises its fund
through various sources outside the business. Following are the various external sources from
where a business can raise its funds:
Bank Loan: Bank loans are the most common sources through which a company can
raise its funds. Hendy's Ltd also raise its fund through various bank loans which attracts only the
interest which is applicable to the principle amount (Rashid and et.al., 2013). Following are the
various advantages and disadvantages of it:
Advantages: Bank loans are flexible in which company has to only worry about its timely
instalments. It also help companies to retain its business profit as business gives a
percentage of its profit to its shareholders, where as banks only requires to pay the
principle amount along with the interest, which help companies to retain its profit.
4

Disadvantage: Bank have very strict requirements which a company has to provide while
taking a business loan from a bank. It requires various form which are to be filled
properly along with companies financial statements.
Hire Purchase: Hire purchase system is a system of raising fund which is available to
the businesses, in which it had to pay the amount which is set in various instalments in order to
use a particular assets (Budhwar and Debrah, 2013). Following are advantages and
disadvantages:
Advantages: It helps the company to increase its net worth by acquiring huge assets and
also helps company to reduce the burden of paying huge amount at once.
Disadvantages: The main disadvantage of this type of financing option is that if company
fails to pay any instalment the asset will be taken back by a company or individual from which it
was taken.
Internal Sources: Internal sources are the sources from which a company can raise its
funds internally by the revenue generate from its existing assets and activities. Hendy's Ltd uses
various internal sources to raise its funds in order to support its business operations. Following
are various internal sources which help companies to raise its funds:
Retained Earnings: It is a part of companies earning which is separated from it net profit
and kept in reserves to use it when company needs funds in order to support its operations or
acquire a new assets.
Advantages: The main benefit of using its retained earning is that company does not have
to repay this or issue additional share capital.
Disadvantages: it does not have any practice disadvantage as it is a part of previously
earned profit.
Sales of Fixed Assets: In order to raise funds company some times sale its old fixed
assets in order to supports its business operations. In Hendy's Ltd company sale out its fixed
assets which cannot be used for its office work.
Advantages: It helps the company to identity and sale of its assets which are not used by
company for a long period of time (Ehnert, Harry and Zink, 2013).
Disadvantages: The assets which are sold before the optimum utilisation and before its
useful life that particular assets lose their service.
5
taking a business loan from a bank. It requires various form which are to be filled
properly along with companies financial statements.
Hire Purchase: Hire purchase system is a system of raising fund which is available to
the businesses, in which it had to pay the amount which is set in various instalments in order to
use a particular assets (Budhwar and Debrah, 2013). Following are advantages and
disadvantages:
Advantages: It helps the company to increase its net worth by acquiring huge assets and
also helps company to reduce the burden of paying huge amount at once.
Disadvantages: The main disadvantage of this type of financing option is that if company
fails to pay any instalment the asset will be taken back by a company or individual from which it
was taken.
Internal Sources: Internal sources are the sources from which a company can raise its
funds internally by the revenue generate from its existing assets and activities. Hendy's Ltd uses
various internal sources to raise its funds in order to support its business operations. Following
are various internal sources which help companies to raise its funds:
Retained Earnings: It is a part of companies earning which is separated from it net profit
and kept in reserves to use it when company needs funds in order to support its operations or
acquire a new assets.
Advantages: The main benefit of using its retained earning is that company does not have
to repay this or issue additional share capital.
Disadvantages: it does not have any practice disadvantage as it is a part of previously
earned profit.
Sales of Fixed Assets: In order to raise funds company some times sale its old fixed
assets in order to supports its business operations. In Hendy's Ltd company sale out its fixed
assets which cannot be used for its office work.
Advantages: It helps the company to identity and sale of its assets which are not used by
company for a long period of time (Ehnert, Harry and Zink, 2013).
Disadvantages: The assets which are sold before the optimum utilisation and before its
useful life that particular assets lose their service.
5
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P5 Interpretation of trading and profit and loss account and balance sheet
Financial statements are the statements which are prepared by the finance department of
the company which show the company's financial position and its ability to survives in the
competitive market. It is a statement which is require by mangers to analyse its growth and
compare its performance with the previous year. This statement shows the total revenue which is
generated by the company from its operations and other non operating income. These financial
statements includes cash Flow statements, trading and profit and loss accounts and balance sheet.
The main purpose of preparing a financial statements is to track its business and day to day
transaction and check its financial position and growth. It is also help mangers to compare its
financial condition with its competitors and gain competitive advantages over them. Hendy's Ltd
uses its Profit and loss statements and balance sheet statements to analyse its financial position.
Following is the detailed interpretation of its Financial statements
Income Statements: Income statements are the statements which helps company to
calculate its total revenue generated from its business operations. It is considered as an important
statements as it shows the company's net profit after adjusting for all its expenses whether direct
or indirect form the revenue generated (Somsuk, Wonglimpiyarat and Laosirihongthong, 2012).
The main purpose of preparing income statements is to analyse the company's profitability and
its capabilities to maximize its profit. It helps managers of Hendy's Ltd to generate a strategic
decision in order to reduce its cost and maximize its profit. It also provides the accurate financial
information about the company's performance. Following is the interpretation of Hendy's Ltd
income statement:
Sales: In the year 2018 company generated the revenue of 600000 which showed an
increase by 50000 from the previous year i.e., 2017.
Cost of Sales: in the year 2017 company incurred 125000 in order to generate its revenue
whereas in the year 2018 it incurred 220000 to generate its revenue it showed that
company cost of goods sold was increased by 95000 in the year 2018.
Gross Profit: The Gross profit for the year 2018 is stated at 380000 which dropped from
425000 in the year 2017 due to increase in its cost of sales.
Net Profit: The net profit earned by company in 2017 was stated at 264000 where as in
the year 2018 the company's net profit cam down by 80000 due to its increase cost of
sales. The net profit for the year was 184000.
6
Financial statements are the statements which are prepared by the finance department of
the company which show the company's financial position and its ability to survives in the
competitive market. It is a statement which is require by mangers to analyse its growth and
compare its performance with the previous year. This statement shows the total revenue which is
generated by the company from its operations and other non operating income. These financial
statements includes cash Flow statements, trading and profit and loss accounts and balance sheet.
The main purpose of preparing a financial statements is to track its business and day to day
transaction and check its financial position and growth. It is also help mangers to compare its
financial condition with its competitors and gain competitive advantages over them. Hendy's Ltd
uses its Profit and loss statements and balance sheet statements to analyse its financial position.
Following is the detailed interpretation of its Financial statements
Income Statements: Income statements are the statements which helps company to
calculate its total revenue generated from its business operations. It is considered as an important
statements as it shows the company's net profit after adjusting for all its expenses whether direct
or indirect form the revenue generated (Somsuk, Wonglimpiyarat and Laosirihongthong, 2012).
The main purpose of preparing income statements is to analyse the company's profitability and
its capabilities to maximize its profit. It helps managers of Hendy's Ltd to generate a strategic
decision in order to reduce its cost and maximize its profit. It also provides the accurate financial
information about the company's performance. Following is the interpretation of Hendy's Ltd
income statement:
Sales: In the year 2018 company generated the revenue of 600000 which showed an
increase by 50000 from the previous year i.e., 2017.
Cost of Sales: in the year 2017 company incurred 125000 in order to generate its revenue
whereas in the year 2018 it incurred 220000 to generate its revenue it showed that
company cost of goods sold was increased by 95000 in the year 2018.
Gross Profit: The Gross profit for the year 2018 is stated at 380000 which dropped from
425000 in the year 2017 due to increase in its cost of sales.
Net Profit: The net profit earned by company in 2017 was stated at 264000 where as in
the year 2018 the company's net profit cam down by 80000 due to its increase cost of
sales. The net profit for the year was 184000.
6

Balance Sheet is the part of financial statements which states the company's health and its
financial position. It is an statement which shows the company total assets and its liabilities at
the end of an accounting period. It is prepared by the companies to check its financial stability
and its position in the market as compared to its competitors. Following are the interpretation of
Hendy's Ltd balance sheet:
Assets(Including intangible and tangible assets): The total assets including company's
both tangible and intangible assets reported by the company at the end of year 2018 was
22000 in which 15000 were of tangible assets including office equipments and 7000 as
intangible assets.
Current Assets: Current assets held by Hendy's Ltd at the end of the financial year was
300000 as cash at bank, 15000 as its total debtors and 50000 as its closing stock.
Liabilities: Liabilities including both current and long term liabilities recorded by
Hendy's Ltd for the year ended 2018 was at 183000
Current liabilities: Total current liabilities recorded by company is stated at 140000
which include 80000 as directors loan and 60000 as short term creditors.
Long term liabilities: The long term liabilities stated by the company at end of year 2018
includes 43000 as its long term creditors.
Net assets: The net assets reported by the company after the deduction of total liabilities
from assets is stated at 204000.
Owner's equity (Share capital): The share capital of Hendy's Ltd is stated as 20000 at the
end of financial year 2018.
P6 Uses of a budgets as a means of exercising financial control
Planning and controlling can help companies to gain its financial position and improve its
business operations. In order to control the financial activities Hendy's Ltd uses two method such
as follows:
Break Even Analysis: It is a tool which help companies to calculate that whether they
are able to meet its cost or not (Schulte, 2013). This analysis helps the companies to point that at
this point company does not earn any profit nor incur any loss.
7
financial position. It is an statement which shows the company total assets and its liabilities at
the end of an accounting period. It is prepared by the companies to check its financial stability
and its position in the market as compared to its competitors. Following are the interpretation of
Hendy's Ltd balance sheet:
Assets(Including intangible and tangible assets): The total assets including company's
both tangible and intangible assets reported by the company at the end of year 2018 was
22000 in which 15000 were of tangible assets including office equipments and 7000 as
intangible assets.
Current Assets: Current assets held by Hendy's Ltd at the end of the financial year was
300000 as cash at bank, 15000 as its total debtors and 50000 as its closing stock.
Liabilities: Liabilities including both current and long term liabilities recorded by
Hendy's Ltd for the year ended 2018 was at 183000
Current liabilities: Total current liabilities recorded by company is stated at 140000
which include 80000 as directors loan and 60000 as short term creditors.
Long term liabilities: The long term liabilities stated by the company at end of year 2018
includes 43000 as its long term creditors.
Net assets: The net assets reported by the company after the deduction of total liabilities
from assets is stated at 204000.
Owner's equity (Share capital): The share capital of Hendy's Ltd is stated as 20000 at the
end of financial year 2018.
P6 Uses of a budgets as a means of exercising financial control
Planning and controlling can help companies to gain its financial position and improve its
business operations. In order to control the financial activities Hendy's Ltd uses two method such
as follows:
Break Even Analysis: It is a tool which help companies to calculate that whether they
are able to meet its cost or not (Schulte, 2013). This analysis helps the companies to point that at
this point company does not earn any profit nor incur any loss.
7

Interpretation: From the above graph it can be established that the fixed cost which
Hendy's Ltd incur remain constant at 5000 where the total cost changes due to the change in the
variable cost and it occurs due to various marketing activities. As per the above given graph
break even point at which company get no profit or no loss is 550 units.
The man benefit of break even analysis is provides no loss and no profit situation to the
company.
Budgeting: It is a process in which company estimates its future expense and future
revenues after the analysis of previous performance. In Hendy's Ltd mangers use budgeting
method to identify the areas which require to be controlled in order to control its financial
activities.
P7 Financial state
Financial ratios gives the clear picture of company's performance as it calculate the ratio
by analysing two year data and help managers to clearly find out its financial performance along
8
Hendy's Ltd incur remain constant at 5000 where the total cost changes due to the change in the
variable cost and it occurs due to various marketing activities. As per the above given graph
break even point at which company get no profit or no loss is 550 units.
The man benefit of break even analysis is provides no loss and no profit situation to the
company.
Budgeting: It is a process in which company estimates its future expense and future
revenues after the analysis of previous performance. In Hendy's Ltd mangers use budgeting
method to identify the areas which require to be controlled in order to control its financial
activities.
P7 Financial state
Financial ratios gives the clear picture of company's performance as it calculate the ratio
by analysing two year data and help managers to clearly find out its financial performance along
8
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with its over all performance. Managers of Hendy's Ltd uses the following ratios to analyse its
company's overall performance.
Profitability Ratio: The ratios are called the financial metrics which are used by
investors and managers to calculate the growth of its business and it ability to generate profit
from its operations. It states the amount of profit which is earned by a company from its revenue.
Following are the various types of ratio:
Gross Profit Margin: This ratio states the percentage of gross profit earned by company
on its net sales.
Net profit margin: This ratio states the percentage of net profit earned from its revenue.
Liquidity Ratio: This ratio states the liquidity of business which means the companies
ability to convert its assets into cash as early as possible. Following are the various types of
ratios:
Current Ratio: It states the company ability to pay off its current liabilities with its current
assets.
Quick Ratio: It states the ability of quick assets to pay off its current liabilities.
CONCLUSION
From the above report it can be concluded that a business needs various resources in
order to perform its day to day operations. It can also be established that companies can raise its
funds from various sources such as internal and external. The above report also states the
importance of ratios in order to calculate performance of a business.
9
company's overall performance.
Profitability Ratio: The ratios are called the financial metrics which are used by
investors and managers to calculate the growth of its business and it ability to generate profit
from its operations. It states the amount of profit which is earned by a company from its revenue.
Following are the various types of ratio:
Gross Profit Margin: This ratio states the percentage of gross profit earned by company
on its net sales.
Net profit margin: This ratio states the percentage of net profit earned from its revenue.
Liquidity Ratio: This ratio states the liquidity of business which means the companies
ability to convert its assets into cash as early as possible. Following are the various types of
ratios:
Current Ratio: It states the company ability to pay off its current liabilities with its current
assets.
Quick Ratio: It states the ability of quick assets to pay off its current liabilities.
CONCLUSION
From the above report it can be concluded that a business needs various resources in
order to perform its day to day operations. It can also be established that companies can raise its
funds from various sources such as internal and external. The above report also states the
importance of ratios in order to calculate performance of a business.
9

REFERENCES
Books and Journals
Noe, R. A., and et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Anderson, V., 2013. Research methods in human resource management: investigating a
business issue. Kogan Page Publishers.
Quinlan, C., and et.al., 2019. Business research methods. South Western Cengage.
Audi, R., 2012. Virtue ethics as a resource in business. Business Ethics Quarterly, 22(2), pp.273-
291.
Rashid, A., and et.al., 2013. Resource Conservative Manufacturing: an essential change in
business and technology paradigm for sustainable manufacturing. Journal of Cleaner
production. 57. pp.166-177.
Budhwar, P. S. and Debrah, Y. A. eds., 2013. Human resource management in developing
countries. Routledge.
Ehnert, I., Harry, W. and Zink, K. J., 2013. Sustainability and Human Resource Management-
Developing Sustainable Business Organizations.
Somsuk, N., Wonglimpiyarat, J. and Laosirihongthong, T., 2012. Technology business
incubators and industrial development: resource-based view. Industrial Management &
Data Systems. 112(2). pp.245-267.
Schulte, U. G., 2013. New business models for a radical change in resource
efficiency. Environmental Innovation and Societal Transitions. 9. pp.43-47.
10
Books and Journals
Noe, R. A., and et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Anderson, V., 2013. Research methods in human resource management: investigating a
business issue. Kogan Page Publishers.
Quinlan, C., and et.al., 2019. Business research methods. South Western Cengage.
Audi, R., 2012. Virtue ethics as a resource in business. Business Ethics Quarterly, 22(2), pp.273-
291.
Rashid, A., and et.al., 2013. Resource Conservative Manufacturing: an essential change in
business and technology paradigm for sustainable manufacturing. Journal of Cleaner
production. 57. pp.166-177.
Budhwar, P. S. and Debrah, Y. A. eds., 2013. Human resource management in developing
countries. Routledge.
Ehnert, I., Harry, W. and Zink, K. J., 2013. Sustainability and Human Resource Management-
Developing Sustainable Business Organizations.
Somsuk, N., Wonglimpiyarat, J. and Laosirihongthong, T., 2012. Technology business
incubators and industrial development: resource-based view. Industrial Management &
Data Systems. 112(2). pp.245-267.
Schulte, U. G., 2013. New business models for a radical change in resource
efficiency. Environmental Innovation and Societal Transitions. 9. pp.43-47.
10
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