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List a few of the issues and considerations businesses should have when it comes

Accounting
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List a few of the issues and considerations businesses should have when it comes to the selection of long -term investments - and how those issues impact the various financial statements,

Aug 7th, 2014
  • competitors- a stiff competition would be a threat to the anticipated incomes and workability of their strategy at the given market setting. competition leads to low profitability as businesses edge to lower product prices.
  • profitability- a highly profitable venture would be of much interest, however this may not be so on a business destined for long term investments that may be as well viable at low profitability.
  • company's equity position-a company could shift from long term to short term goals where the fiture of its existence seem  not guaranteed. this is in times of economic uncertainty where equity falls.
  • goals- a business with long-term goals may view short term profits unfeasible and could as well make short term losses with no hitch.
  • risk tolerance- long-term investment may be more attracting to businesses which have low risk tolerance as they usually involve long time span allowing for market observation and corrections.
Aug 8th, 2014

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Aug 7th, 2014
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Aug 7th, 2014
Feb 22nd, 2017
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