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AQA BUS5W - Thursday 17th June watch

1. We were taught standard deviation. that lesson was amusing as it was the easiest ever.....we were taught it along side how wto calculate mean median and mode....and also how to do the moving average on a graph. It was a nice easy lesson for me as I do Maths (and did stats gcse so i had already done the moving average). I don't think any other classes at my colelge were taught it though...i beleive it was kind of assumed you knew it, and if you needed to calculate the standard deviation they probably give you a formula or something....i dont think they can expect you to remember amths stuff like that for business studies
2. (Original post by James_W)
To: xxx
From: yyy
Date: mm/dd/yyyy

TITLE OF REPORT
1. For
1.1
1.2
1.3
2. Against
2.1
2.2
2.3
3. Conclusions & Recommendations
3.1
3.2
3.3
Nice format, any ideas on how its split up marks wise, total = 40 for the question so 15marks-For 15marks-Against and 10 for Conclusion you think?
3. Evaluate as you make each point... then just evaluate loads at the end in the Recommendations (my revision book says to repeat in necessary)
4. (Original post by James_W)
Evaluate as you make each point... then just evaluate loads at the end in the Recommendations (my revision book says to repeat in necessary)
Cheers.
5. Yeah, it's the format of a Memo reporting on something.

0.8 is 80% which is highly geared. damn i hate gearing, stupid business studies confusing my mind!!!

You can work out depreciation from the expected value it will sell for I believe. I can't really remember though...thats unit 4 stuff and i did that in january.
good luck with unit 5 guys, when is it? I don't have to do it, I did the corusework
I thought 80% was low geared and above 100% was high geared? Am I confused? I thought unit 6 was just on external influences and objectives and strat.
6. (Original post by Don Quixote)
Yeah, it's the format of a Memo reporting on something.

I thought 80% was low geared and above 100% was high geared? Am I confused? I thought unit 6 was just on external influences and objectives and strat.
over 50% is higly geared under is low geared
7. ^ But remember... how important this is to the firm depends on Interest Rates...

If a firm's gearing ratio is at 0.4, and Interest Rates are HIGH... and if the firms gearing ratio is 0.7 and Interest Rates are LOW - theres not going to be a big different to the firm!
8. (Original post by princessb)
I'm just going through ratios and worked out a gearing ratio for a balance sheet and the answer is 0.8, so how do I turn that figure into the ratio. We did ratios in October and I'm having trouble remembering now. I'm very worried about these exams.
Also, can you only work out the depreciation of something after its been sold?
You work out depreciation of an item by either straight line depreciation or diminishing balence method. Straight line looks at the resale value in a set amount of time and then divides the difference between new (historic) value and the resale value by the number of years. The amount per year is then subtracted from the initial value to find yearly depreciation.
so:
(origional cost - residual (resale) value) divided by estimated life

The second method is the depreciate the item by a percentage each year (would be given in exam). So if you started out with a historic cost of 16000 and depreciated by 25% p/y you would go 16000 yr1, 12000 yr1, 9000 yr3, 6750 yr3 etc.

0.8 = 80% above 0.5 or 50% is highly geared below is low geared

Hope its helped
9. (Original post by James_W)
^ But remember... how important this is to the firm depends on Interest Rates...

If a firm's gearing ratio is at 0.4, and Interest Rates are HIGH... and if the firms gearing ratio is 0.7 and Interest Rates are LOW - theres not going to be a big different to the firm!
True but for a general bench mark 50 is used
10. Yeh... but as evaluation - what I said about I.R. would leave examiners in a puddle of their own ***.
11. help I have this exam tomorrow i need to get at least a c i have only ever got d's in mocks help meeeee!!! how is ever one else feeling about this exam ?
12. (Original post by James_W)
Yeh... but as evaluation - what I said about I.R. would leave examiners in a puddle of their own ***.
LOL i nearly pissed my pants when i read this
13. (Original post by ryan_h)
help I have this exam tomorrow i need to get at least a c i have only ever got d's in mocks help meeeee!!! how is ever one else feeling about this exam ?
I feel scared, I need an A, no seriously I feel confident I think I have it nailed
14. What's the maximum UMS points avaliable for UNIT5?
15. I think the UMS is 90 the raw mark is 84. And in my text book:
A2 Business Studies by Malcolm Surridge and Andrew Gillespie, it says under 100% is low geared and over 100 is high. So who's right.
16. OK we have a discrepency here, there are 2 different gearing formulas
gearing 1= prior charge capital / total long term capital =
gearing 2= long term loans / by capital employed x 100 =

100% in gearing 1 is highly geared
50% in gearing 2 is highly geared

Very confusing, check these out:
http://www.bized.ac.uk/virtual/vla/t...ring_ratio.htm
http://www.s-cool.co.uk/topic_quickl...s=&ebl=&elc=13
http://www.bized.ac.uk/dataserv/extel/notes/ipay-th.htm

Capital employed (net assets) =
fixed assets + current assets - current liabilities

Proir charge capital =
long term loans + preference shares

Arrr
17. Which Uni/Subject are you going to/doing after A Levels InvestmentBoy?
18. (Original post by Investmentboy)
OK we have a discrepency here, there are 2 different gearing formulas
gearing 1= prior charge capital / total long term capital =
gearing 2= long term loans / by capital employed x 100 =

100% in gearing 1 is highly geared
50% in gearing 2 is highly geared

Very confusing, check these out:
http://www.bized.ac.uk/virtual/vla/t...ring_ratio.htm
http://www.s-cool.co.uk/topic_quickl...s=&ebl=&elc=13
http://www.bized.ac.uk/dataserv/extel/notes/ipay-th.htm

Capital employed (net assets) =
fixed assets + current assets - current liabilities

Proir charge capital =
long term loans + preference shares

Arrr
My theory is stuck to:

long term loans / capital employed x100 and over 50% highly geared.

Dont forget interest cover for highly geared companies as the large amount of borrowed capital will have interest charges:

interest cover=

PBIT / Interest interest charges = (at least 3 expected under 2 regarded as low)

In the gearing method I have suggested 50% is highly geared as 100% would mean the entire company is funded by loans which is impossible
19. (Original post by James_W)
Which Uni/Subject are you going to/doing after A Levels InvestmentBoy?
Economics at sheffield uni if i go this year or if i wait and do a maths a level then maybe cam/warwick, you?
20. Going to Nottingham for Management Studies

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Updated: June 17, 2004
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