City: M & S stores ring up a prosperous Christmas 

1	Explain the meaning of these terms:
	a) gross profit
	b) net profit
	c) turnover
	d) profit and loss account
	e) conglomerate
	f) dividend.

2	a) What are the advantages and disadvantages of reducing profit margins?
	b) From the data at the top of the article 'M&S doing Europe in style', 
	which is increasing faster for M&S - turnover or pre-tax profit?
	c) Would these figures please the shareholders? Explain your answer.
	d) Would the figures please the employees? Explain your answer.
	e) The article 'M&S stores ring up a prosperous Christmas' states that
	 trading both at home and overseas remains 'extremely competitive'. 
	What exactly does this mean?
	f) Why did the share price fall as a result?

3	Both Calor Gas and M&S had increased their dividend. Why do firms want 	to do this, if possible?
   
4	a) Read the article 'Iceland edges to £33.6m as sales dip.'. What is meant by 	'price deflation'?
	b) How could a marketing campaign help Iceland?