How does an investor decide where to invest

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Reference no: EM131956823

Question: Which company, A or B, is doing better? Explain Why

Company A

Sales $100,000

Profit $10,000

Company B

Sales $20,000

Profit $3,000

In other words, its relationships of certain accounts are of greater interest rather than the absolute dollar figures themselves. How does an investor decide where to invest? A company's offering price is dependant on its financial strength.

Reference no: EM131956823

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