2.42 Understanding Business Performance

A business uses a range of data to help measure performance and make plans.

Quantitative data is about numbers and includes charts, graphs and statistics.

Financial data is useful to a business when it compares how it’s doing now to previous periods. If it’s a PLC or limited company it will need to produce an annual financial report each year. Suppliers and investors will be interested in this data – why do you think this is?

Marketing data such as responses to customer surveys can help a business to make decisions.

Of course, data can be open to interpretation and subject to human error, so a business may want to combine it with qualitative data to help minimise any bad decisions.

Try the exam style questions by clicking here to see the sort of question you may be asked about on this topic.