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News in Action 4 (1999)(Daily Telegraph)[Mac-PC].iso
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00660_Text_Text Window Template.txt
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1999-02-05
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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?