He also had to choose the source of short term financing. When the business would be successful then the promoter has planned to make the company public which is the best option available for financing. Along with this the he would like to get finance from the banks or by issuing bonds. From the part B of the study the purpose of the financial statements was understood by the researcher. It was also clear that there are different formats of financial statements for different type of companies (sole trader, limited company and partnership). From the FTSE 100 companies GlaxoSmithKline was selected by the researcher and analysis of the company was done using ratio analysis. From this study the importance of ratio analysis also understood for taking the decision of investment in a company.
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