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ACC220WK3DQ2 (2) - How does information from financial...

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How does information from financial reports influence business decisions? There are many different ways that financial reports information influences financial decisions. For example; if the other company is interested in taking their company on as a business partnership, but can not get correct, reliable and accurate figures of how the company has grown in the last 5 years. They might decide to be in partnership with another company who is more organized and has all their facts straight. For internal decisions financial reports might be showing the company it is not improving or changing. A company could decide after seeing these results clearer it is time to close their doors. Financial reports can also show a company how they have grown as far as assets, where their strengths are and their weaknesses are. Internally they have a chance to fix this before anyone else from the outside would know of any of their flaws. Like the IRS, potential clients, future clients and so on.
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