Source: https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-6-research-and-financial-data [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [GCSE](https://senecalearning.com/en-gb/revision-notes/gcse.md) › [Business](https://senecalearning.com/en-gb/revision-notes/gcse/business.md) › [Edexcel](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel.md) › Research & Financial Data # Research & Financial Data Business: Edexcel GCSE, topic 2.4.6 ## Qualitative and Quantitative Research Qualitative and quantitative research can give a business data to support, inform and justify business decisions. ### Qualitative research ![Qualitative research](https://image-v2.cdn.app.senecalearning.com/2018-03/0f70f9a4-104f-4d6d-805a-f71ee3da2e05/shutterstock_315241841.jpg) - Qualitative research generally collects information about opinions and views rather than things that can be quantified (put into numbers). - For example, research into whether customers think the customer service at Waitrose is good is qualitative research. ### Quantitative research ![Quantitative research](https://image-v2.cdn.app.senecalearning.com/2018-03/96ee0613-433d-46e4-b28b-f87333bc885a/shutterstock_325949840.jpg) - Quantitative research collects factual information on things that can be quantified (put into numbers) and recorded easily. - For example, research into the number of Ford Focus cars sold in the UK last year is quantitative research. It is not based on an opinion, but is based on statistics/data. ## Financial Data Financial data is quantitative data that contains information about the financial performance and financial position of a firm. The financial statements published by firms and internal data about sales and profits are examples of financial data. The uses of financial data include: ### Internal performance assessment ![Internal performance assessment](https://image-v2.cdn.app.senecalearning.com/2018-03/fbe475f6-c407-411b-9285-b707cb93c8bd/shutterstock_525110944.jpg) - Financial data can be used by internal management to assess the financial performance of a firm. - Financial data is useful in spotting when the firm is not doing well and getting to the bottom of why it is not doing well. - Business managers can use the financial data to spot trends and see if the firm is growing and becoming more or less profitable. ### Investor assessment ![Investor assessment](https://image-v2.cdn.app.senecalearning.com/2018-03/05abd7e8-2ff8-4768-8b6b-155ce07f7337/shutterstock_706247503.jpg) - Financial data can be used by potential investors to see if it is worth investing in the business. ### Competitor assessment ![Competitor assessment](https://image-v2.cdn.app.senecalearning.com/2018-03/4aed5c8e-7015-4aff-baff-345e7dd5f6fa/shutterstock_527842111.jpg) - Financial data can be used to compare a firm’s performance to the performance of their competitors. - This gives a benchmark of how the firm should be performing compared to how they are actually performing. ### Limitations of financial data ![Limitations of financial data](https://image-v2.cdn.app.senecalearning.com/2018-03/69a52987-04e5-4c64-b6c9-6febdce7652a/shutterstock_348889514.jpg) - Financial data is not as factual as it might seem. Sometimes it is based on people’s judgment or computer modelling. - Financial data may only give a snapshot of financial performance at one point in time. This can be misleading as it may not take into account external factors or competitors’ behaviour. - Looking only at one firm’s financial data does not always give a good idea of that firm’s performance. ## Test yourself on Research & Financial Data - Which of these data sets would be obtained from quantitative research? - Data is collected on a company's percentage growth. What type of research is this? - How does data from research affect companies decisions? - Usually, what type of data is financial data? [Practise this topic for free](https://app.senecalearning.com/classroom/course/e7efbfa0-222a-11e8-9249-b5781fc38111/section/f09ef720-2391-11e8-bb4b-e16fac146884/session) - Previous topic: [2.4.5 Rate of Return - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-5-rate-of-return-calculations.md) - Next topic: [2.4.7 Marketing Data](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-7-marketing-data.md) ## Business: Edexcel GCSE contents ### 1 Investigating Small Business - 1.1 Enterprise & Entrepreneurship - [1.1.1 The Dynamic Nature of Businesses](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-1-the-dynamic-nature-of-businesses.md) - [1.1.2 Risk & Reward](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-2-risk-and-reward.md) - [1.1.3 The Role of Business Enterprise](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-3-the-role-of-business-enterprise.md) - [1.1.4 The Role of Business Enterprise 2](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-4-the-role-of-business-enterprise-2.md) - [1.1.5 The Role of the Entrepreneur](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-5-the-role-of-the-entrepreneur.md) - [1.1.6 End of Topic Test - Dynamic Nature of Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-6-end-of-topic-test-dynamic-nature-of-business.md) - [1.1.7 Grade 9 - Dynamic Nature of Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-7-grade-9-dynamic-nature-of-business.md) - 1.2 Spotting a Business Opportunity - [1.2.1 Customer Needs](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-1-customer-needs.md) - [1.2.2 Market Research](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-2-market-research.md) - [1.2.3 Market Segmentation](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-3-market-segmentation.md) - [1.2.4 The Competitive Environment](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-4-the-competitive-environment.md) - [1.2.5 Primary & Secondary Market Research](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-5-primary-and-secondary-market-research.md) - [1.2.6 End of Topic Test - Business Opportunities](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-6-end-of-topic-test-business-opportunities.md) - [1.2.7 Application Questions - Business Opportunities](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-7-application-questions-business-opportunities.md) - [1.2.8 Exam-Style Questions - Market Segmentation](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-8-exam-style-questions-market-segmentation.md) - [1.2.9 Diagnostic Misconceptions - Competition](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-9-diagnostic-misconceptions-competition.md) - 1.3 Putting a Business Idea into Practice - [1.3.1 Business Aims](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-1-business-aims.md) - [1.3.2 Business Objectives](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-2-business-objectives.md) - [1.3.3 Business Revenues & Costs](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-3-business-revenues-and-costs.md) - [1.3.4 Costs - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-4-costs-calculations.md) - [1.3.5 Revenue - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-5-revenue-calculations.md) - [1.3.6 Business Profits & Break-Even Analysis](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-6-business-profits-and-break-even-analysis.md) - [1.3.7 Profits & Losses - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-7-profits-and-losses-calculations.md) - [1.3.8 Interest - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-8-interest-calculations.md) - [1.3.9 Cash & Cash Flow](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-9-cash-and-cash-flow.md) - [1.3.10 Cash & Cash Flow 2](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-10-cash-and-cash-flow-2.md) - [1.3.11 Cash Flow - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-11-cash-flow-calculations.md) - [1.3.12 Sources of Business Finance](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-12-sources-of-business-finance.md) - [1.3.13 End of Topic Test - Business in Practice](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-13-end-of-topic-test-business-in-practice.md) - [1.3.14 Grade 9 - Business in Practice](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-14-grade-9-business-in-practice.md) - [1.3.15 Exam-Style Questions - Business in Practice](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-15-exam-style-questions-business-in-practice.md) - [1.3.16 Diagnostic Misconceptions - Profit](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-16-diagnostic-misconceptions-profit.md) - [1.3.17 Diagnostic Misconceptions - Company vs Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-17-diagnostic-misconceptions-company-vs-business.md) - [1.3.18 Diagnostic Misconceptions - Economies of Scale](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-18-diagnostic-misconceptions-economies-of-scale.md) - [1.3.19 Diagnostic Misconceptions - Cash Flow](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-19-diagnostic-misconceptions-cash-flow.md) - [1.3.20 Diagnostic Misconceptions - Break-even](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-20-diagnostic-misconceptions-break-even.md) - [1.3.21 Diagnostic Misconceptions - Fixed Costs](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-21-diagnostic-misconceptions-fixed-costs.md) - 1.4 Making the Business Effective - [1.4.1 The Options for Start-Up & Small Businesses](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-1-the-options-for-start-up-and-small-businesses.md) - [1.4.2 Limited Liability](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-2-limited-liability.md) - [1.4.3 Franchising & Not-For-Profits](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-3-franchising-and-not-for-profits.md) - [1.4.4 Business Location](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-4-business-location.md) - [1.4.5 The Marketing Mix](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-5-the-marketing-mix.md) - [1.4.6 Business Plans](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-6-business-plans.md) - [1.4.7 End of Topic Test - Effective Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-7-end-of-topic-test-effective-business.md) - [1.4.8 Application Questions - Effective Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-8-application-questions-effective-business.md) - [1.4.9 Exam-Style Questions - Business Plans](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-9-exam-style-questions-business-plans.md) - 1.5 Business Stakeholders - [1.5.1 Business Stakeholders](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-1-business-stakeholders.md) - [1.5.2 Technology & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-2-technology-and-business.md) - [1.5.3 Legislation & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-3-legislation-and-business.md) - [1.5.4 Legislation & Business 2](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-4-legislation-and-business-2.md) - [1.5.5 The Economy & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-5-the-economy-and-business.md) - [1.5.6 External Influences](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-6-external-influences.md) - [1.5.7 End of Topic Test - Business Stakeholders](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-7-end-of-topic-test-business-stakeholders.md) - [1.5.8 Grade 9 - Business Stakeholders](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-8-grade-9-business-stakeholders.md) - [1.5.9 Diagnostic Misconceptions - Recessions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-9-diagnostic-misconceptions-recessions.md) ### 2 Building a Business - 2.1 Growing the Business - [2.1.1 Business Growth](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-1-business-growth.md) - [2.1.2 Finance](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-2-finance.md) - [2.1.3 Changes in Business Aims & Globalisation](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-3-changes-in-business-aims-and-globalisation.md) - [2.1.4 Ethics & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-4-ethics-and-business.md) - [2.1.5 The Environment & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-5-the-environment-and-business.md) - [2.1.6 End of Topic Test - Growing a Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-6-end-of-topic-test-growing-a-business.md) - [2.1.7 Application Questions - Growing a Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-7-application-questions-growing-a-business.md) - [2.1.8 Exam-Style Questions - Business Growth](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-8-exam-style-questions-business-growth.md) - 2.2 Making Marketing Decisions - [2.2.1 Product](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-1-product.md) - [2.2.2 Product Life Cycle](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-2-product-life-cycle.md) - [2.2.3 Price](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-3-price.md) - [2.2.4 Pricing Methods](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-4-pricing-methods.md) - [2.2.5 End of Topic Test - Product & Price](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-5-end-of-topic-test-product-and-price.md) - [2.2.6 Grade 9 - Product & Price](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-6-grade-9-product-and-price.md) - [2.2.7 Promotion & Advertising](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-7-promotion-and-advertising.md) - [2.2.8 PR & Sales Promotions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-8-pr-and-sales-promotions.md) - [2.2.9 Sponsorship & Product Placement](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-9-sponsorship-and-product-placement.md) - [2.2.10 Promotional Mix](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-10-promotional-mix.md) - [2.2.11 End of Topic Test - Promotion](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-11-end-of-topic-test-promotion.md) - [2.2.12 Application Questions - Promotion](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-12-application-questions-promotion.md) - [2.2.13 Exam-Style Questions - Promotional Mix](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-13-exam-style-questions-promotional-mix.md) - [2.2.14 Place & Wholesalers](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-14-place-and-wholesalers.md) - [2.2.15 Direct to Consumer](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-15-direct-to-consumer.md) - [2.2.16 E-commerce & M-commerce](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-16-e-commerce-and-m-commerce.md) - [2.2.17 Diagnostic Misconceptions - Decreasing Price](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-17-diagnostic-misconceptions-decreasing-price.md) - [2.2.18 Diagnostic Misconceptions - Advertise vs Promote](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-18-diagnostic-misconceptions-advertise-vs-promote.md) - [2.2.19 Diagnostic Misconceptions - Social Media](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-19-diagnostic-misconceptions-social-media.md) - 2.3 Making Operational Decisions - [2.3.1 Job Production](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-1-job-production.md) - [2.3.2 Batch & Flow Production](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-2-batch-and-flow-production.md) - [2.3.3 Working with Suppliers](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-3-working-with-suppliers.md) - [2.3.4 Effective Supply Chains](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-4-effective-supply-chains.md) - [2.3.5 Just In Time & Just In Case](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-5-just-in-time-and-just-in-case.md) - [2.3.6 Managing Quality](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-6-managing-quality.md) - [2.3.7 Total Quality Management](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-7-total-quality-management.md) - [2.3.8 The Sales Process](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-8-the-sales-process.md) - [2.3.9 End of Topic Test - Operational Decisions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-9-end-of-topic-test-operational-decisions.md) - [2.3.10 Grade 9 - Operational Decisions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-10-grade-9-operational-decisions.md) - [2.3.11 Exam-Style Questions - Managing Stock](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-11-exam-style-questions-managing-stock.md) - [2.3.12 Diagnostic Misconceptions - JIT vs JIC](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-12-diagnostic-misconceptions-jit-vs-jic.md) - 2.4 Making Financial Decisions - [2.4.1 Gross Profit & Net Profit - Definitions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-1-gross-profit-and-net-profit-definitions.md) - [2.4.2 Gross Profit - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-2-gross-profit-calculations.md) - [2.4.3 Net Profit - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-3-net-profit-calculations.md) - [2.4.4 Rate of Return](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-4-rate-of-return.md) - [2.4.5 Rate of Return - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-5-rate-of-return-calculations.md) - [2.4.6 Research & Financial Data](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-6-research-and-financial-data.md) - [2.4.7 Marketing Data](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-7-marketing-data.md) - [2.4.8 Percentage Change - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-8-percentage-change-calculations.md) - 2.5 Making Human Resource Decisions - [2.5.1 Organisational Structures](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-1-organisational-structures.md) - [2.5.2 Organisational Structures 2](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-2-organisational-structures-2.md) - [2.5.3 Recruitment](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-3-recruitment.md) - [2.5.4 Effective Recruitment](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-4-effective-recruitment.md) - [2.5.5 Training a Workforce](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-5-training-a-workforce.md) - [2.5.6 Motivating a Workforce](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-6-motivating-a-workforce.md) - [2.5.7 End of Topic Tests - Human Resources](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-7-end-of-topic-tests-human-resources.md) - [2.5.8 Application Questions - Human Resources](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-8-application-questions-human-resources.md) - [2.5.9 Exam-Style Questions - Human Resources](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-9-exam-style-questions-human-resources.md) - [2.5.10 Diagnostic Misconceptions - Owners vs Shareholders](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-10-diagnostic-misconceptions-owners-vs-shareholders.md) - [2.5.11 Diagnostic Misconceptions - Internal Recruitment](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-11-diagnostic-misconceptions-internal-recruitment.md) - [2.5.12 Diagnostic Misconceptions - Employee Motivation](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-12-diagnostic-misconceptions-employee-motivation.md)