Abstract:
The need for this study is to provide all the stakeholders who directly or indirectly engage with the enterprise to have a look into company’s exact financial position for their personal benefit. The company’s management need to know the exact financial performance and financial position of the company without any window dressings in order to take effective and more efficient decisions regarding the foreseeable future of the company in enabling the company to accomplish its his long-term and short-term goals. The investors who are looking to invest in the business can also benefit from this study as they are provided with a crystal clear image of the company by showing them the financial position of both companies in comparison using ratio analysis, the investors can make decisions regarding whether to invest in the company or not; or which company to invest in as they will have enough information. Information provided by this study is also beneficial to the employees as they are it will motivate them to work harder after seeing how much their contribution has been beneficial to the company in achieving its goals. They will get answers to questions like whether company will be able to pay them in the future, whether they will get bonuses or not and if the company will continue to run for the foreseeable future.
