Unit 2

Proposal for Triangle Solutions

Introduction

Every business has different financial requirements and analytical techniques to evaluate its needs and performance with respect to nature of operations, market, and sensitivity to external and internal environments. Financial Analysis is concerned with analysis of financial statements and various accounts. It evaluates the vulnerability, suitability and productivity of business or a project. It is primarily done by analysts by calculating various ratios that evaluate the current performance of company and facilitate them to compare it to the other companies and Industry. It also provides a picture of performance trends to managers on the basis of which significant decisions are made. It also involves preparation of financial reports, which are submitted, to top management for review.

Discussion

We understand budget and expenses to all entries that a person, organization or government can anticipate for a given period in relation to ones finances. The idea is always a budget forecast or state personal finances and make a budget that requires some advance not only the costs to be carried out in time but also certain gains or capital inflows that may mean that period. As the name implies, the budget is just pre-suppose in finance and economics what the activities or movements to be made in a future period is calculated approximately. Normally, when we talk about budget or state governments, we talk about budgets that are developed taking into account a host of variables related to various economic activities in the region, with construction projects or new government measures, with the possible payment of debts or international charges, extra expenses and even the anticipation of possible changes to the original budget from the results obtained with each of the projections indicated. The budget of other subjects as specific individuals or entities can also be clipped to greater or lesser periods of one year, for example when a work plan foresees that extend over a year or requiring less than twelve months. However, the importance lies in the budget always serious and make a projection based on economic movements, monetary and financial characterize the individual who performs it. Thus, without the budget can easily get into chaos generated more costs than necessary or even by not controlling the gains or capital inflows that are made. In the set up of every business there are numerous dynamic business environments which will influence the organization's performance either negatively or positively. One of the most integral concepts which is related to the dynamic business environment is related to economic changes. Economic changes are those trends that keep on updating and modifying themselves related to the how the economy is performing. Such economic changes and upgrades are related to the boom in economy and recession. Economic boom has an optimistic impact on the environment of any business as businesses produce great amounts of profits. Economic recession has a total negative impact on the environment of a business as it ends up into a deceleration in demand which results in reduced ...