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how your decision-making process might change if you needed to make stock-investment decisions for a business.
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- 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.Discuss how a company's primary financial statements are useful to potential investors who are trying to decide whether to buy stock in a company.You want to evaluate the stock of a company. Answer the following questions to guide your analysis analysis and explain what data you rely on and what you do with it? Why are the net assets of the company important? What other indicator does an investor look at when selecting investments?
- How can the Stock price be a good indicator of your company's financial health and may also reflect the market's attitude?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.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.
- How does the percentage of ownership a company has in an investment effect them? Would the percentage of ownership be a big factor in your decision whether or not to invest in a company? Please explain.How does the % of ownership a company has in an investment effect them? Would the % of ownership be a big factor in your decision whether or not to invest in a company? Please explain.How can an entrepreneur maximize their investment in the financial section of their company plan?
- Explain how a firm might use stock options in order to incentivise a manager to work in the shareholders’ best interests.If the management of a company would like to improve the company's return on equity, what should the management of the company do?You want to evaluate the stock of a company. Answer the following questions to guide your analysis analysis and explain what data you rely on and what you do with it? How do you express the performance of a stock? Based on this definition, how does an investor select the stocks in which to invest?