LP10.1 Assignment: Google This: "Cost Control"

This assignment will assess the competency 10. Analyze the various concepts financial management

Directions: Financial management and accounting are extremely important in any organization or business's success. For this assignment read the Behind The Scenes at the end of chapter 17 in your textbook about Google.

Write a report answering the following questions:

• Given the eventual need for rigorous financial management, do you think every company should have extensive cost controls in place from the first moment of operation? Explain your answer.

• Google recently had a debt-to-equity ratio of 0.04. Microsoft, one of its key competitors, had a debt-to-equity ratio of 0.15. From a bank's point of view, which of the two companies is a more attractive loan candidate, based on this ratio? Why?

• Over the course of a recent six-month period, Google's current ratio increased from 8.77 to 11.91. Does this make Google more or less of a credit risk in the eyes of potential lenders? Why?

Provide your report in a word document with standard formatting, either single or double spaced in 12 point Times New Roman font. Use proper spelling, grammar, and punctuation. Your report should be between 500 and 1000 words long; longer reports will be accepted so feel free to go over the minimum.