Mgt Wk 2

Wk6DQ1.  In performing a business analysis, what significant accounting and financial information must be considered? Why is this information important? How can management use this information?

In performing a business analysis the balance sheet, income statement and statement of cash flows must be considered. This information is important because the balance sheet reports financial condition on a specific date, the income statement summarizes revenues, cost of goods, and expenses for a specific period and highlights total profit or loss, and the statement of cash flows provides a summary of money coming into and going out of the firm (Nickels, 2012, p. 464).   It is very important to know how much money the company is making, spending, and how much it debt the company has.   It is also crucial to know if a company can pay off loans in a short period.  
Analyzing financial ratios is a necessary step to assess a company’s financial condition.   They are useful in comparing the company’s performance to its financial objectives and to the performance of other companies in the industry.   The ratios compare how a company compares to others on liquidity, amount of debt, profitability, and overall business activity (Nickels, 2012, p. 473).

Nickels, W. G., McHugh, J. M., & McHugh, S.M. (2010). Understanding business (9th ed.). McGraw-Hill Company.

Wk6DQ2.  What factors would you consider in determining your business strategy and how would you decide on what tactics to use in order to execute your strategy?

When determining my business strategy and tactics to execute this strategy, I would do a SWOT analysis first.   It is very important to know your strengths, weaknesses, opportunities, and threats in facing your practice.   This enables you to step outside your business and yourself to view it more objectively. If I were to open a sports complex, I would have to know that my strengths are baseball training, because I’ve played professional baseball for 7...