Explore Related Concepts

Best Results From Wikipedia Yahoo Answers

From Wikipedia

Problem statement

A problem statement is a concise description of the issues that need to be addressed by a problem solving team and should be presented to them (or created by them) before they try to solve the problem. When bringing together a team to achieve a particular purpose provide them with a problem statement. A good problem statement should answer these questions:

  1. What is the problem? This should explain why the team is needed.
  2. Who has the problem or who is the client/customer? This should explain who needs the solution and who will decide the problem has been solved.
  3. What form can the resolution be? What is the scope and limitations (in time, money, resources, technologies) that can be used to solve the problem? Does the client want a white paper? A web-tool? A new feature for a product? A brainstorming on a topic?

The primary purpose of a problem statement is to focus the attention of the problem solving team. However, if the focus of the problem is too narrow or the scope of the solution too limited the creativity and innovation of the solution can be stifling.

In project management, the problem statement is part of the project charter. It lists what's essential about the project and enables the project manager to identify the project scope as well as the project stakeholders.

A research-worthy problem statement is the description of an active challenge (i.e. problem) faced by researchers and/or practitioners that does not have adequate solutions available including the argumentation for its viability based on solid peer-reviewed sources as well as theoretical foundation. The research-worthy problem statement should address all six questions: what, how, where, when, why, and who. On the other hand, a statement of the problem is one or two sentences claim that outlines the problem that the study addresses. The statement of the problem should briefly address the question: What is the problem that the research will address?

Financial statement analysis

Financial statement analysis (or financial analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project.

It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Based on these reports, management may:

  • Continue or discontinue its main operation or part of its business;
  • Make or purchase certain materials in the manufacture of its product;
  • Acquire or rent/lease certain machineries and equipment in the production of its goods;
  • Issue stocks or negotiate for a bank loan to increase its working capital;
  • Make decisions regarding investing or lending capital;
  • Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.


Financial analysts often assess the firm's:

1. Profitability - its ability to earn income and sustain growth in both short-term and long-term. A company's degree of profitability is usually based on the income statement, which reports on the company's results of operations;

2. Solvency - its ability to pay its obligation to creditors and other third parties in the long-term;
3. Liquidity - its ability to maintain positive cash flow, while satisfying immediate obligations;

Both 2 and 3 are based on the company'sbalance sheet, which indicates the financial condition of a business as of a given point in time.

4. Stability- the firm's ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business. Assessing a company's stability requires the use of both the income statement and the balance sheet, as well as other financial and non-financial indicators.


Financial analysts often compare financial ratios (of solvency, profitability, growth, etc.):

  • Past Performance - Across historical time periods for the same firm (the last 5 years for example),
  • Future Performance - Using historical figures and certain mathematical and statistical techniques, including present and future values, This extrapolation method is the main source of errors in financial analysis as past statistics can be poor predictors of future prospects.
  • Comparative Performance - Comparison between similar firms.

These ratios are calculated by dividing a (group of) account balance(s), taken from the balance sheet and / or the income statement, by another, for example :

n / equity =ROE
Net income / total assets = return on assets
Stock price / earnings per share = P/E-ratio

Comparing financial ratios is merely one way of conducting financial analysis. Financial ratios face several theoretical challenges:

  • They say little about the firm's prospects in an absolute sense. Their insights about relative performance require a reference point from other time periods or similar firms.
  • One ratio holds little meaning. As indicators, ratios can be logically interpreted in at least two ways. One can partially overcome this problem by combining several related ratios to paint a more comprehensive picture of the firm's performance.
  • Seasonal factors may prevent year-end values from being representative. A ratio's values may be distorted as account balances change from the beginning to the end of an accounting period. Use average values for such accounts whenever possible.
  • Financial ratios are no more objective than the accounting methods employed. Changes in accounting policies or choices can yield drastically different ratio values.
  • They fail to account for exogenous factors like investor behavior that are not based upon economic fundamentals of the firm or the general economy (fundamental analysis) .

Financial analysts can also use percentage analysis which involves reducing a series of figures as a percentage of some base amount. For example, a group of items can be expressed as a percentage of net income. When proportionate changes in the same figure over a given time period expressed as a percentage is known as horizontal analysis. Vertical or common-size analysis, reduces all items on a statement to a “common size� as a percentage of some base value which assists in comparability with other companies of different sizes .

Another method is comparative analysis. This provides a better way to determine trends. Comparative analysis presents the same information for two or more time periods and is presented side-by-side to allow for easy analysis..

From Yahoo Answers

Question:i need a good thesis statement for my persuasive esssay and i need a topic so go nuts!

Answers:A thesis statement is a sentence that describes your topic. For example, I like dogs because (reason), (reason), and (reason).

Question:The professor keeps rejecting our problem statement, because it "has no depth" as she said. Here is what we submitted: How does pricing influence college students' attitude towards healthier instant noodles? Here's the problem we had in mind: College students love instant noodles. Instant noodles are unhealthy. Healthier instant noodles have been made. But they are more expensive. We want to find out the DIFFERENTIAL THRESHOLD between the cheaper noodles and the healthier noodles, in other words: is the increase in price negligible? Or is it noticeable enough to alter purchasing behavior? What about some variables other than but related to pricing? This would help in making the statement more concise and meaningful. Help please. Suggestions are very welcome.

Answers:Kind of hard to get into the head space of your prof but I think what she means is that it will be challenging to do significant research on your problem statement as it is worded. So. Restated: (note - a problem statement can be, and often is, more than one sentence) In the instant noodles market, what role does price elasticity of demand have on the buyer behavior of college students? This research project will investigate buyer behavior in purchasing no-name or generica brand instant noodles, brand name instant noodles, and a healthier brand of instant noodles and the role that price plays. You could change/add "the role price plays" to add "the role price, brand identity and health plays"; that would give you more depth (3 variables) but it does make for a more challenging study design. Good luck.

Question:idk what two are. suggestions please?

Answers:positive statement - monopolies are evil! normative - let's regulate them! i.e. positive statements describe the reality, normative suggest ways to change it.

Question:Please can someone give me a thesis statements about animal rights

Answers:Humans are animals, humans have many rights, thus all animals should have rights.