ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
To sell the business right away
|
|
|
To evaluate the financial health of the business
|
|
|
To keep others from stealing the produce
|
|
|
To keep business at a consistent level
|
Detailed explanation-1: -If you aren’t sure if an investment or partnership will be worth it in the long run, analyzing the company’s financial health factors is essential. Each one of these indicators will give you insight into how well a company is doing financially and determine whether or not you should trust them with your money.
Detailed explanation-2: -Why Is Financial Performance Important? A company’s financial performance tells investors about its general well-being. It’s a snapshot of its economic health and the job its management is doing-providing insight into the future: whether its operations and profits are on track to grow and the outlook for its stock.
Detailed explanation-3: -Why is it important to talk about a company’s financial health? Knowing how to look after a company’s financial health is critical to the success of a business. It’s a way of measuring a company’s performance and determining its level of profitability. After all, some firms sell a lot yet still lose money!
Detailed explanation-4: -It provides internal and external stakeholders with the opportunity to make informed decisions regarding investing. Financial statement analysis also provides lending institutions with an unbiased view of a business’s financial health, which is helpful for making lending decisions.
Detailed explanation-5: -Analyze the Balance Sheet. The balance sheet is a statement that shows a company’s financial position at a specific point in time. Analyze the Income Statement. Analyze the Cash Flow Statement. Financial Ratio Analysis. 18-Jun-2020