Sam is planning to open a pool cleaning business from his home. Sam’s business will come with a set-up cost of $9,000 and an ann
ual operational cost of $30,500. Sam anticipates an annual profit of $45,000 for the first year and expects profits to increase by 5.5% annually for the next 5 years. This is all information Sam should include in the _____ component of his business plan.
a.
organization plan
b.
financial analysis
c.
executive summary
d.
implementation plan
Financial analysis is a specific part of resource analysis, which in practice means an analysis of activities in which finance or money and time play a primary role. The aim of such an analysis is to reveal the strengths and weaknesses of the company, to determine its performance and to evaluate the information obtained so that the financial analysis becomes one of the tools used to manage the company.
When a graph is drawn with output on the vertical axis and input on the horizontal axis, this indicates that the straight or "flat" segment on the graph is the representation of a region where the output doesn't change in response to the input.
