Hello!
My name is Lisbeth Peña and I'm doing a MBA here in Australia although I'm from Dominican Republic. I have an assignment and I do not find the answer to one of its questions.
This is the problem:
You work as part of a team that selects parts suppliers for a large manufacturer. Your company is highly dependent on your suppliers, and you want long-term relationships. You want suppliers who are financially stable, without cash flow problems. If they need more capacity in order to grow with you, you want them to be able to attract additional investors.
One of your team members claims that financial statements tell you everything you need to know to determine the future stability and growth potential of a supplier. Another claims that financial statements are useless in the process, and that talking with the people in the company is the only route to judging its future.
And this is the question:
5. What relationships in the statements would help you judge whether the company could attract additional capital for growth?
My background is from arts, so if someone could explain me this in a simple manner I would really appreciate it.
My name is Lisbeth Peña and I'm doing a MBA here in Australia although I'm from Dominican Republic. I have an assignment and I do not find the answer to one of its questions.
This is the problem:
You work as part of a team that selects parts suppliers for a large manufacturer. Your company is highly dependent on your suppliers, and you want long-term relationships. You want suppliers who are financially stable, without cash flow problems. If they need more capacity in order to grow with you, you want them to be able to attract additional investors.
One of your team members claims that financial statements tell you everything you need to know to determine the future stability and growth potential of a supplier. Another claims that financial statements are useless in the process, and that talking with the people in the company is the only route to judging its future.
And this is the question:
5. What relationships in the statements would help you judge whether the company could attract additional capital for growth?
My background is from arts, so if someone could explain me this in a simple manner I would really appreciate it.