February 2025

Business Studies: Profitability Ratios

By |2025-02-12T09:00:21+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis:Profitability Ratios

  • These measures indicate how well a business is performing in terms of its ability to generate profit
  • The ratios relate profits to sales and assets
  • There are three commonly used ratios:
  • Return on Capital Employed (ROCE)
  • Profit Margin and
  • Profit Markup

Return on Capital Employed

  • Is normally […]
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Business Studies: Liquidity ratios

By |2025-02-12T09:06:43+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis:Liquidity ratios

  • Liquidity is a measure of how well a business can meet its short term obligations as and when they fall due
  • It is usually expressed in terms of how well the entity in question can convert its assets into cash
  • Short term obligations include amounts owed […]
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Business Studies: Working Capital

By |2025-02-12T09:06:56+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Working Capital

  • Refers to the capital of the business that is used for the day to day running of the business
  • Put simply it is the cash available for day-to-day operations of an organization
  • Strictly speaking though working capital is more than just cash
  • It includes all the assets […]
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Business Studies: Gearing ratios

By |2025-02-12T09:12:05+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis:Gearing ratios

  • Gearing refers to the extent to which a business’s assets are financed using debt capital versus equity capital
  • Remember the balance sheet equation:
  • Assets = Capital (Equity) + Liabilities (Debt)
  • What this means is that all assets are purchased using either equity or debt finance
  • Equity […]
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Business Studies: Budgets an introduction

By |2025-02-12T09:13:24+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis:Budgets an introduction

  • As pointed out in another topic one of the principal functions of management is planning
  • It involves creating predetermined courses of action (i.e. plans)
  • A budget is a plan of action for achieving quantified objectives
  • Budgets are plans of action expressed in quantitative(measurable) terms

    • […]

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Uses, advantages and disadvantages of budgets

By |2025-02-12T09:13:33+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis: Budgets: Uses, advantages and disadvantages of budgets

  • Facilitate coordination between departments within the organisation
  • Helps to assign and clarify responsibilities e.g. the production department must produce and the marketing department sell produced units
  • Help to translate strategic plans into actionable departmental goals
  • Improves communication
  • Help to control […]
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Fixed costs, variable costs, direct costs and indirect cost

By |2025-02-12T09:16:19+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Fixed costs, variable costs, direct costs and indirect cost

  • Cost accounting is the accounting function concerned with calculating costs
  • Cost is an amount that has to be paid or given up in order to get something
  • In business costs are expressed in monetary terms
  • In this discussion costs include:
      […]
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Introduction to break even analysis

By |2025-02-12T09:17:47+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes|

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Introduction to break even analysis

  • It is a simple decision making aid used to discover the level of output/activity that is required before profits are made
  • It can also be used to discover the level of activity/output required to achieve a set level of profits
  • Break even analysis is […]
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