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- How can an individual who is thinking of going into business evaluate the financial picture of the enterprise?Identify two key financial ratios you would use as a guide (and why) to help you determine which business you would prefer to invest inIn the financial portion of the business plan, how can an entrepreneur make the most of their investment?
- Based on the analysis of transactions, state which financial statement Balance Sheet or Income Statement is more important to an outside investor when deciding to invest in a potential business. Explain your choice.If an outside investor decides to invest in a company, which financial statement is more essential, the Balance Sheet or the Income Statement? Explain why you made the decision you did.If you were a user of financial statements, what type of ratio/analysis do you think would be most important to use to make sure the company you have invested in is doing well? What would you look for in a company that you were considering investing in?
- Please see below. Be sure to include an explanation as well. If you were a user of financial statements, what type of ratio/analysis do you think would be most important to use to make sure the company you have invested in is doing well? What would you look for in a company that you were considering investing in?Balance Sheet vs. Income Statement: Which financial statement is more significant to an outside investor when making a decision to invest in a prospective company? Give a rationale for it.As a potential investor in a firm or perhaps the buyer of a particular business, would it be advisable for you to evaluate the company's financial statements? Why or why not? What key information would you seek from a firm's financial statements?
- If you are an investor how do you assess the financial ratios of the company? And why?What is your primary objective in choosing a company in which to invest money? What key items or relationships will you look for in each financial statement that will help you decide in which company to invest?A friend who knows you study accounting approaches you to discuss share market investment strategies. They believe deciding which shares to invest in should be based solely on understanding the business model and reading analyst forecasts regarding the company. Is this strategy sound? Why or why not? What other approaches or tools would you recommend to assist in making investment decisions? Discuss.