Business Finance
Rationale Behind Choosing General Motors Business Investment Analysis Essay

Question Description

I’m stuck on a Accounting question and need an explanation.

Business Investment Analysis

Situation: You have $10,000 that was gifted to you by a wealthy relative. Their restriction on the gift was that you use it to learn about investing in the stock market. Your assignment will be to research a company of your choice and make an investment recommendation bases on your respective financial analysis.

In the project report I’d like the following items to be covered:

1) Show me the analysis of rationale behind choosing the company you did. Explore industry choice why it was selected vs. another industry and company choice vs other companies in that respective industry.

2) For your chosen company show horizontal, vertical and common size analyses.
3) Describe other financial ratios that were used in your analysis. Compare them to other

companies in your chosen industry and to the industry average. Note at least five ratios should

have been analyzed. Earnings per share must be one of the ratios analyzed.
4) Explain items from the annual report and how they influenced your decision to invest in the

company. Also, include risks that you understand about the company and how you will initiate a

way to monitor it/them in the future to manage your investment. 5) Explain any other factors in your analysis that led to your decision.

Rules:

A) You need to invest in an individual company. You can’t invest in a mutual fund, ETF, etc.

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Final Answer

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Running head: BUSINESS INVESTMENT ANALYSIS

Business Investment Analysis
Institution Affiliation
Date

1

BUSINESS INVESTMENT ANALYSIS

2
Introduction

Most people, when given a huge amount of money, they opt to spend it on things that
they see suits them at that moment, for instance, the purchase of luxurious vehicles and houses.
Some find smart ways of utilizing the given money to ensure that it would, in turn, earn them
additional returns to cater to their needs. The stock exchange market has offered many people
with opportunities in investing their money, which will give returns as dividends monthly or
annually (Biais & Green, 2019). With the given $10,000 it would be advisable to invest in a
company which has previously been earning considerable profits over a long period. Choosing a
company with a good going concern is quite necessary as the chances of investment risks are not
many.
Analysis of Rationale Behind Choosing General Motors
The company that I would choose to invest in is the General Motors Company, which is
one of the best automobile companies in the US. Recently, the company had been able to raise
tremendous profits as it is based on the manufacture of vehicles. The company has an annual
revenue of fifty-two billion us dollars. It also has more ...

ProfJamesmiller (20476)
Purdue University

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