Free L4M4 Exam Braindumps (page: 3)

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The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers.
What is a disadvantage of using a weighted point system?

  1. it allows transparency
  2. it is time-consuming to create
  3. it is easy to manipulate
  4. it is hard to be objective

Answer(s): A

Explanation:

Weighted points systems can be time consuming to create. They're very transparent and allow for objective grading of supplier bids (so these answers are incorrect). They are not easy to manipulate and this is an advantage of using them.



The gross profit of a company can be calculated by using a simple formul

  1. What is this?
  2. total revenue - cost of sales
  3. assets - liabilities
  4. cost of sales - fixed assets
  5. debt owed - total sales

Answer(s): A

Explanation:

gross profit = total revenue - cost of sales.
Learn all you can about financial ratios and financial statements for the exam- it's a very common topic



A balance sheet will show a company's assets, liabilities and shareholder equity.
What is share- holder equity?

  1. the profit from sales once tax has been deducted
  2. the amount of money held in the company's bank account
  3. the owners' residual claim once all debt has been paid
  4. the amount of money from retained earnings

Answer(s): C

Explanation:

shareholder equity = the owner/s of the organisation's residual claim once all debts have been paid.
What Is Shareholder Equity (SE) and How Is It Calculated? (investopedia.com)



If a company is described as 'liquid' what does this mean?

  1. the company is funded on equity rather than debt
  2. the company spends a lot of money
  3. the company is highly profitable
  4. the company has enough money to pay short-term liabilities

Answer(s): D

Explanation:

liquid = the ability to pay short and medium term debts. In simple terms do you have more in stuff (money, assets) than you owe in debt?

Understanding Liquidity and How to Measure It (investopedia.com) This is a hot topic for the exam. Learn everything in this section.



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