Fin 320 principles of finance | FIN-320 | Southern New Hampshire University
The cause(s) of the business’s financial success or failure could be attributed to a variety of factors. For instance, if it is performing well then this may be due to its operational efficiency, strong customer relationships, and/or innovative product offerings which have allowed it to compete with other organizations in the same market. On the other hand, if it is experiencing financial difficulties then this could be because of improper management decisions such as overspending or inadequate staffing which can lead to significant losses over time.
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. Furthermore, examining their cash flow statements and balance sheets will provide a more comprehensive picture of their overall position thus allowing further analysis to take place accordingly. 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.