Sue Needs to Create a Report That Looks into the Financial

question 32

Multiple Choice

Sue needs to create a report that looks into the financial implications of acquiring another company.So she needs to prepare a ________.

• A) diligence report
• B) market analysis report
• C) analytical report
• D) due diligence report

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Definitions:

Drawings

Withdrawals made by an owner from the business for personal use, reducing the capital account of the owner.

Capital Investment

Funds invested in a business by the owners or shareholders to purchase assets or to provide working capital with the aim of generating long-term revenue and profits.

Net Loss

The result when a company's total expenses exceed its total revenues during a specific period, indicating a negative financial performance.

Capital Balance

The amount of money invested in a business by its owners plus any retained earnings or minus any losses.