question archive A financial analysis indicates that a small business's customer base and its profitability have steadily increased over the past six months

A financial analysis indicates that a small business's customer base and its profitability have steadily increased over the past six months

Subject:EconomicsPrice:2.87 Bought7

A financial analysis indicates that a small business's customer base and its profitability have steadily increased over the past six months. What decision is the business most likely to make with this information? A. Obtain a loan for equipment repairs C. Liquidate major assets B. Hire an additional salesperson D. Monitor industry trends

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Answer:

B Hire an additional salesperson. 

Businesses analyze financial information for many reasons, one of which is to guide their decision making. If the financial reports indicate that the business is acquiring more customers and earning more profits, the business may want to hire an additional salesperson to maintain the business's standard of service. A business is more likely to obtain a loan or liquidate assets when its sales and revenue decrease. Businesses should continuously monitor industry trends to remain competitive in the marketplace-regardless of their financial situations.