Answer:
The answer to the question is financial analysis.
Explanation:
Financial analysis affords the organization's management the opportunity to review performance of the entity compared to previous performances as well as industry averages.This would serve as a guide in piloting the affairs of the company in future.
Also, financial analysis can also be conducted externally by would-be investors in order to validate the value placed on the company's share by examining financial statements,budgets,strategies and the sector outlook of the business with a bid to putting a fair value on the shares of the company.
