1.8 Limitations of The Research
1.8 Limitations of The Research
1.8 Limitations of The Research
During research, the researcher met some problems. However, he tried to minimize the
effects of those problems that culminate the success of this study. Below are some of the limitations
encountered and how they were controlled: Mostly, the financial statements are prepared on the
concept of historical costs. They do not reflect the values in terms of current costs. Such
information might cause misunderstandings. The financial statements were as interim reports and
not final because of preparation of one year or sometimes half yearly. While the actual profit or
loss could only be known when the business is closed. To overcome of these limitations the
researcher did all possible to minimize the consequences that may result from them. He tried to
minimize cost and find other resources from family and relatives and over worked day and night.
Ratios analysis has been used to assess company performance for almost as long as modern share
Business performance: is a set of management and analytic processes that enables the
Profitability: is a measure of the amount by which a firms revenues exceeds its relevant expenses.
Activity ratios are used to measure the relative efficiency of a firm based on its use of its assets,