By G. Gorman (auth.)
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Extra info for Business Studies A Level
Gross trading surplus has risen steadily, and faster than GDP, which implies that NIs have increased profitability more rapidly than the rest of the economy. This may have been due to factors such as better management, cost-cutting, greater productivity and higher prices. Figures for inflation during the period would be useful to verify the increase in real profits. Externalfinance has fallen, both in absolute money terms and as a percentage of GDP. This may be due to factors such as greater profitability, denationalisation and reductions in investment.
Than (e) For example: • • • • • • redundancy procedures and costs; job losses leading to lower morale; higher wages for more skilled/educated workforce; may be difficult to attract skilled workers; higher training costs; greater expectations by workers, such as for more satisfying work. 3 Newlin's Ltd. has to decide whether to continue producing its traditional range of goods next year or whether to produce an entirely new line. To help in making this decision, it is considering spending £5000 on a market research survey to assess the level of interest in this new line, which may be high, medium, or low.
9 Explain the term 'limited liability'. 10 Distinguish between a public company and a public corporation. 11 The following passage is adapted from Buy-outs and British Industry (Lloyds Bank Review, October 1982). Read the passage carefully and answer the questions which follow. The buy-out of companies by their management has been one of the more important changes in the UK commercial and industrial scene in recent years:a development which was taken one step further in 1982 with the staff buy-out of the National Freight Corporation.