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2.4.2 Understanding business performance Categorise

Target Level

4-5

Running Total

Attempt

1 of 1

Click on an item, then click on a category to place it. Or, drag and drop the item into the correct category. Organise all items before clicking 'Check'.

There are uses and limitations of financial data as a decision-making tool in business. Put each phrase into the correct category: a use (positive) or a limitation (negative).

USES OF FINANCIAL DATA FOR DECISION-MAKING

LIMITATIONS OF FINANCIAL DATA FOR DECISION-MAKING

Data can be compared with that of other companies

There can be errors in the data

Data can be compared year on year

Financial data may cover only a limited time period

Data can be out of date

Data can indicate the cash flow of a business

Data may not take into account inflation rates

Intangible data such as goodwill or reputation hard to record

A new business may have no historical data for comparison

Financial data can be subject to fraud

Data can help the business to allocate resources

Data is a key indicator of the success of business strategies

Data can be visual to aid analysis

Data can be used to spot trends in performance

This is your 1^st attempt! You get 1 marks for each one you get right first time. Good luck!

Pass Mark

70%