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What might be the cause(s) of the business’s financial success or failure? Is more information needed to determine the business’s financial health?

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Posted on 
May 25th, 2023
Home Homework Help What might be the cause(s) of the business’s financial success or failure? Is more information needed to determine the business’s financial health?
The cause(s) of the business’s financial success or failure could be attributed to a variety of factors. It may perform well because it has strong customer relationships and/or offers innovative products. This allows it to compete in the same industry as other businesses. On the contrary, if a company is having financial issues it could be due to improper decisions made by management such as excessive spending or insufficient staffing. This can cause significant losses.

Additional information may also be required before determining the exact state of the business’s finances since external factors like current economic trends or industry challenges must also taken into consideration. Examining their balance sheet and cash flow statement will also provide a comprehensive view of the business’s overall situation, which can be used to conduct further analyses. Ultimately, understanding both internal and external influences on an organization’s performance can help shed light on what strategies should be employed for optimal results in the future.

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