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Relevance Of Financial Ratio Analysis In The Appraisal Of Small Scalebusiness
[A CASE STUDY OF SELECTED SMALL SCALE COMPANY IN CROSS RIVER STATE]
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1.5 RESEARCH HYPOTHESES
Based on the problems and objectives, the following hypotheses are formulated for study.
Hypotheses1
H0: Non-challant attitude in the use of financial statement does not affect small scale business
H1: Non challant attitude in the use of financial statement affects small scale business.
Hypotheses 2
H0: Obsolete use of data does not affect small scale business
H1: Obsolete use of data affects small scale business
Hypotheses 3
Ho: Lack of competent management does not affect small scale business.
H1: Lack of competent management affect small scale business.
1.6 SIGNIFICANT OF THE STUDY
This
research work will help in determining how the performance of a company
can be measured through the use ratio as a tool of financial analysis.
The
study will help in reflecting a qualitative relationship between
financial statement of a different period and different firms. It will
serve as a reference to other researchers with the mind of having in
depth insight about ratios and its performance measuring abilities.
1.7 SCOPE OF THE STUDY
This
study as the case may be covers the relevance of financial ratio
analysis in the appraisal of small scale business with particular
reference to Mr. Biggs incross river state. The study takes a
holistic approach in its research to unveil the relevance of financial
ratio analysis in the appraisal of small scale businesses.
1.8 LIMITATION OF THE STUDY
The limitations involved in this research work include:
-Hostility and non cooperation on the part of the respondents.
-The
levels of ignorance on ratios and illiteracy were very high e.g some
business officials refused to answer questions as they felt they would
be indicated.
-Also financial implications were soaring high and this imposed certain restrictions
-Finally, the constraint of time was a limiting factor as all the areas of interest were not covered by the researcher.
1.9 HISTORICAL BACKGROUND OF THE CASE STUDY
The
company study Mr. Biggs plc. The research will delve into the relevance
of financial ratio maintain in those organization in order to access
the element the contain the role they play to interested parties both
within and outside the organisations.
Mr. Biggs plc
Mr. Biggs a
division of U.A.C Nigeria plc, which is regarded as one of the fastest
growing quick service restaurants. It was founded in 1986 and since
then, has restaurant services. Mr. Biggs is Nigeria first chain of
fast food restaurant owned by conglomerate UAC of Nigeria plc. There are
currently around first drive through restaurant, with another four
locations in Ghana. The restaurant is styled after mc Donald‟s and is
known for its red and yellow colour scheme. Mr. Biggs history begins
with coffee shop inside Kingsway Department stores in the 1960‟s. In
1973, these shops were rebranded as Kingsway Rendezvous, which became
Mr. Biggs in 1986.The chain rapid expansion after becoming one of the
first Nigerian companies to sell franchises to investors. Mr.Biggs
specialty is the meat pie. a common lunch might also include scotch egg,
a sugared donot, chicken and a soft drink. Whilewestern fare such as
hamburgers are served. Nigeria delicacies such as jollof rice and
moi-moi are more popular. Birthday cakes are also a popular product and
Mr. Biggs bakery offers cake and pastries.
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThis research work examined the relevance of financial ratio analysis in the appraisal of small scale business with particular reference to Mr. Biggs fast food in cross river state. The study examined the establishing of the extent to which accounting ratio can be used to interpret accounting records of small scale business, finding and analysing the meaning of financial ratio analysis to the researcher knowledge and understanding of financial statement of the company, to establish the e ... Continue reading---
