Principles of Accounting Essay Example | Topics and Well Written Essays - 750 words

Principles of Accounting - Essay Example Whenever any individual wants to invest in any certain industry then he must research about the scope of the industry. Whether the industry is profitable or not, who are the giant players at this time in the market, how these giant players can restrict any new entrant in the market and all these type of questions must be answered initially before going for an investment. If the feasibility of any project is not completed before its start up then the chances of success are surely reduced. Another important consideration is to check one’s own interest towards the new venture. If the specific individual is not capable of grabbing that investment opportunity then he may not be able to take it successfully. The external factors play a very important role in the operations of a single firm. Therefore it is necessary to check these external factors not only their influence but also its intensity on the specific venture or the company which we are going to take on. Markets trends are very much important because they help to devise the strategies to operate in the market. Demand plays a very important role to boost up the profit margins of the company. It is important to check whether the products or the services which the specific company or we can say hotel in our case is offering, are fulfilling the public demands or not. Whether the company has good reputation in the customer’s minds or not? It is also a worth considerable point that either the firm is just covering its costs or also making profits. Whenever we are going to talk with the owner of the company which we are going to purchase, there are certain things which should be clarified before any further negotiation. We should ask the owner about the track record the hotel. Track record means the reputation of the hotel in the industry or we can say the market. The owner should be asked about the capability or in other words we can say