Identify and Explain the Two Profitability Ratios a Small Business

question 1

Essay

Identify and explain the two profitability ratios a small business owner can use to measure how effectively he/she is managing the business.

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Definitions:

Positive Variance

A term used in accounting and finance indicating that actual revenues are higher than forecasted or budgeted revenues, or expenses are lower than expected.

Negative Variance

A situation where actual results are worse than expected or budgeted results, often used in financial or operational contexts.

SBAR

A communication method used in healthcare to ensure clear and concise information exchange; it stands for Situation, Background, Assessment, Recommendation.

Discharge Summary

A document that outlines a patient's hospital stay, treatment given, and instructions for follow-up care upon discharge from a hospital or clinic.