Economic Analysis

Economic analyses are different in terms of kinds and a strategy. They have wide application in business. They are a useful and necessary step in many different cases. The common thing between them is that one deals with detailed or summarized economic information. It is provided most often by the financial or accounting department of the analyzed business entity. We mention hereinafter several, but far from all examples of the application of economic analyses:

• Whenever a certain business entity wants to attract a foreign investor or to get crediting from a banking or financial institution (respectively, financing under a EU project, for example, for regional development);

• Whenever a certain business entity wants to draw up a business plan for future development or for the expansion of its line of business;

• Whenever a certain business entity or a legal person wants to invest in a certain line of business or company and needs a plan for return on investment;

• Whenever there are ongoing processes of division in a company (a division or separation) of activities or individualization of a concrete line of business in a given enterprise, the line of business of this company must be analyzed and cash flows must be separated.

• In case of taking-over or a merger of two or more companies;

• At the fixing of the cost price of ready production or of development activity;

• and others.