Homework Answers
Social entrepreneurs should also be considering financial ratio analysis because financial ratio analysis is just not related to the profitability of the company but it is also related to the other aspects such as Asset Management and efficiency of the company along with the effectiveness.
Social entrepreneurs are generally not responsible for profit making and they are responsible for managing resources in an effective way in order to help the society so they will be trying to look after various kinds of efficiency ratio & the Asset Management ratio so that it will be helpful in order to maximize effectiveness of the social enterprises.
social entrepreneurs should be considering management of financial ratio as it will be helpful in assessment of the financial sustainability of these Organisation in the longer period by improving the effectiveness and management of Assets and they will be trying to generate a higher profitability in order to serve the employees and other social people, so it will be helpful in order to generate more Profits, so that they can manage their resources in an effective way which will be ensuring the sustainability of the business in the longer run and they can fulfill their goals of serving the society.
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Financial ratio analysis is often done for commercial ventures. Explain why social entrepreneurs should consider them...
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