C207 TASK 1 DATA DRIVEN DECISION MAKING SUMMARY 100% CORRECTLY VERIFIED LATEST UPDATE 2024 GRADE A+.

C207 TASK 1 DATA DRIVEN DECISION MAKING SUMMARY 100% CORRECTLY VERIFIED LATEST UPDATE 2024 GRADE A+. B. A real-world situation that can be addressed by data collection and analysis would be the acquisition of a company. Companies often acquire or buy another companies to help increase market share or expand their business into new markets. Before a company can acquire another company, there is a process that takes place which includes collecting data for the purposes of planning and evaluating finances. The data collected and analyzed also gives the company a better idea of how easy it will be for them to enter new markets and potential market growth rates. B.1. One important question that should be asked in this situation: what is the maximum amount that should be paid for the company that is being acquired? B.2. In this situation, the question would benefit from a data analysis in many ways. First, the data analysis would give the purchasing company an idea of how it should finance the acquisition which will help make the decision to finance with debt or with equity. Another benefit of using data analysis for this question is that it can help the company identify risks that may result from the acquisition. One risk it would help to identify is the risk of overpaying for the company which would negatively affect the company’s return on their investment. The data analysis would also help the company identify the risk of becoming overleveraged from the purchase, which would make it difficult for the company to pay its bills and fund the costs of its daily operations. Considering this, the benefit of data analysis is that it would help the company either make a profitable acquisition or avoid making a non-profitable acquisition. B.3 The data that needs to be collected to help determine the maximum amount that should be paid to acquire the company includes: Financial information of the company being purchased to include data from the company’s audited financial statements, accounts receivables, accounts payable, insurance costs, tax information, etc. Value of the company’s physical assets. Costs of any licenses or permits that are required for the company to perform its operations. Costs of any partnerships, contracts or agreements that the company has. B.4. The data for the acquisition would be gathered from a couple different sources. The main source of data will be data would be obtained from the seller. The individual(s) selling the company would be able to provide financial and operational data. The company’s website would also be a source of data. If the company is a publicly traded company, the Securities and Exchange Commission (SEC) can be a source of obtaining financial data that the company has reported. B.5. The data analysis technique used for this situation wo