Question

List and explain THREE non-financial information that may be useful to you in deciding about investing in shares of a company?

Answer 1

Solution:

Although financial factors are very important for making a decision of investment in company but the non financial factors also plays important role in deciding the investment in company’s shares.

Non financial factors to consider for investment include whether the company is

1) Meeting the requirement of current and future legislation

2) Matching industry standards and good practice

3) Anticipating and dealing with future threats, such as protecting intellectual property against potential competition.

4) Improving relationships with suppliers and customers as well as improving business reputation and relationships with the local community.

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