This essay focuses on selecting employees for positions. Certain ratios indicate the ability to repay principal and interest. A stockholder, on the other

selecting employees for positions

Module 1Horizontal and Vertical Analysis
LO 1Explain the various limitations and considerations in financial statement analysis.
Various groups have different purposes for analyzing a company’s financial statements. For example, a banker is interested primarily in the likelihood that a loan will be repaid. Certain ratios indicate the ability to repay principal and interest. A stockholder, on the other hand, is concerned with a fair return on the amount invested in the company. Again, certain ratios are helpful in assessing the return to the stockholder.

The managers of a business also are interest in the tools of financial statement analysis because various outside groups judge managers by using certain key ratios. Fortunately, most financial statements provide information about financial performance. Publicly held corporations are require to include in their annual reports a section that reviews the past year, with management’s comments on its performance as measured by selected ratios and other forms of analysis.

details;

1. firstly, Planning: When you think of planning in a management role, think about it as the process of choosing appropriate goals and actions to pursue and then determining what strategies to use, what actions to take, and deciding what resources are need to achieve the goals.
2. Secondly, Organizing: This process of establishing worker relationships allows workers to work together to achieve their organizational goals.
3. thirdly, Leading: This function involves articulating a vision, energizing employees, inspiring and motivating people using vision, influence, persuasion, and effective communication skills.
4. Further, Staffing: Recruiting and selecting employees for positions within the company (within teams and departments).
5. Lastly, Controlling: Evaluate how well you are achieving your goals, improving performance, taking actions. Put processes in place to help you establish standards, so you can measure, compare, and make decisions.