Describe the relation between financial statement analysis and investment decisions
Relation Between Financial Statement Analysis and Investment Decisions
Theoretical and empirical research has shown that the expected return from investing in a firm relates, in part, to the expected profitability of the firm. The analyst studies a firm's past earnings to understand its operating performance and to help forecast its future profitability. Investment decisions also require that the analyst assess the risk associated with the expected return. A firm may find itself short of cash and unable to repay a short-term loan coming due. Or, it may have so much long-term debt in its financing structure that it has difficulty meeting the required interest and principal payments. The financial statements provide information for assessing how these and other risk elements affect expected return. Most financial statement analysis, therefore, explores some aspect of a firm's profitability, or its risk, or both.
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A corporate code of ethics provides employees with explicit ethics policies and procedures for all potential workplace issues.c
Indicate whether the statement is true or false.
A transmittal message—
a. is prepared in letter format. b. isbound with the report. c. presents the report to the primary reader. d. contains no personal references to the researcher's experience.
Restitution is available as an alternative remedy for a party's repudiation of the contract
Indicate whether the statement is true or false
Consultative selling:
A. uses limited sales planning B. uses a "lone wolf" approach to selling C. sells advice, assistance, and counsel rather than products D. uses short-term follow-ups, which focus on product delivery E. emphasizes closing the sale during the sales presentation