Business Management Essay Example | Topics and Well Written Essays - 1250 words

Business Management - move ExampleAn accountant helps to scrutinize business financial records and analyse them to ascertain positivity, liquidity and financing. The generated financial learning indicate whether business has a potential to earn the potential buyer appropriate levels of income or not.Restaurants determine and serve wide variety of foods, drinks and dessert to customers. In a typical restaurant, the waiters take the orders and bring them when coiffe to customers. The customers pay for the meals before leaving. It is important to understand that running a restaurant successfully requires the owners to be originative and innovative to gain competitive edge over close competitors especially in a locating where there are many similar restaurants. Though both restaurants have better quality meals and good service, Brighams restaurant is preferred to Shadracks restaurant beca mathematical function it performed better financially.fiscal analysis took into account the utilityability, liquidity and solvency ratios. spare financial statements for at least three years are needed. Finally, the report shade light on the additional non financial information needed to make informed purchase decision of one of the restaurants.Financial analysis helps to establish whether the business is financially stable and sustainable. Financial analysis is made easier by use of profitability, liquidity and solvency ratios. Profitability ratios are financial ratios that indicate the capacity of a business to earn a profit (Thukaram, 2007). The main profitability ratios are gross profit, net profit and return on fair-mindedness employed ratios.The above table indicates the profits, revenue, and owners equity as well as computed profitability ratios of the two restaurants. Brighams restaurant has higher absolute profits by $1,860, higher gross profit ratio by 1% and higher return on equity ratio by 0.04. higher(prenominal) gross profit ratio shows that