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Archive for December, 2007

Finance Motivation

Financial analysis has as objective to evaluate an organization’s financial strategy for a previous period and to facilitate within it future decisions making. It investigates two important domains:

  • Financial balance
  • Profitableness

A careful analysis of the results account is indispensable in order to perform financial analysis. Thus, financial analysis is based on the organization’s papers but it also uses other resources too. Apart from a strict study of accounts and balance, financial analysis has as purpose to monitor the specific organization’s activity, the quality of the management team, staff motivation, performances and applied technology.

The results of this analysis can be used within the organization and they serve to its management or outside the organization when it is required by its partners.


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