How would you analyze three business tenets someone e is considering to invest in company stock? What data would you use? How would you calculate the numbers? What calculations do we use?

Three Business tenets are ...

•Is the business simple and understandable?

•Does the business have a consistent operating history?

•Does the business have favorable long-term prospects?

If e, is considering to invest in company stock, 1st tenets should be input and output, Data of raw materials, processing data of that particular raw materials and output of finished goods, calculate the time taken for product as finished goods, Marginal cost, Descriptive statistics. 2nd tenets data calculation of cash inflow and outflow, net profit, operating, income statement and balance sheet. 3rd tenets Sales data time series analysis, ARIMA analysis and forecasting.

Explanation:

Business is simple and understood only, When you understand about the product yourself, If you want to start a business in a fitness drink people should be aware of ingredients of a fitness drink that's how the business become simple, ingredients in all business. Even if you dont understand Business if it is not that simple look into there management there prospectus, Who is there internal auditor which is SWOT in there Accounting. How strong are they able to curtail there operating cost. There are three types investment in business Large cap, Mid cap or diversified cap. Blue chip companies stay long term but less return vise/versa. Data for business, P. E ration, IRR, CAPM, ROI, Ratio Analysis, Financial modelling and analytical mind.