3.5 Assessing Competitiveness

Both balance sheets and P&L accounts are useful in assessing which of the following?

• profit levels per annum

• employee retention

• competitor success

• business performance

In ratio analysis, there are three key types of ratio.

What are they?

• profitability

  ratio

• gearing

  ratio

• expenses

  ratio

• competitor

  ratio

• return on capital employed (ROCE)

  ratio

What method can businesses use if they wish to analyse business performance in a more precise way?

Which of the following describes the output produced per worker?

• absenteeism

• labour

  retention

• labour

  productivity

• labour

  turnover

Labour _______ measures the efficiency of the workforce.

It is complicated to make comparisons, since it can be influenced by things like quantity of _______.

What is meant by 'labour turnover'?

Which of the following are genuine causes of high labour turnover?

• poor working conditions

• increase in remuneration

• inadequete pay levels

• low market research

• few promotion opportunities

Explain why high labour turnover is a problem.

Which of the following describes the rate at which workers stay in the business?

• absenteeism

• labour

  retention

• labour

  productivity

• labour

  turnover

High labour retention is a good thing for businesses.

This is because it creates a more stable _______ and means they can avoid the cost of recruiting new ____.