The author chooses to focus on four sections of a firm’s 10K report, t

The author chooses to focus on four sections of a firm’s 10K report, the firm description, risk factors, current legal proceedings, and analysis of financial conditions.

What important information can be obtained by looking at each of these sections?

ANSWER

The firm description provides an overall understanding of what the firm produces and their objectives and vision for the future. The analysis of risk factors provides insight into strengths and weaknesses for a firm and how such issues may be challenged and addressed moving forward. Legal proceedings obviously inform the reader of potential costs and benefits that may result from legal actions. Finally, financial conditions within the firm, industry, and the general economy go a long way toward framing the potential a firm has in the foreseeable future.