1. Formulate a clear and focused research question to investigate the statement of inquiry. ‘Profit analysis allows businesses stakeholders to process a firm’s financial performance, resources and compare it to their own and to other firms, previous year’s performance’.

2. Justify the relevance of your research question in relation to the statement of inquiry

3. Since Amazon is a public limited company, describe two sources of finance for the firm.

AMZN) is one of the most valuable megacap companies on the Nasdaq exchange. The firm commands a high premium valuation because of its demonstrated record of consistent sales growth. However, it almost always appears grossly overvalued when using earnings-based valuation methods.

Amazon pursued a strategy of reinvesting most of its profits into the business. This strategy allowed the company to expand faster, and it also minimized taxes. As a result, traditional measurements of value often fail when applied to Amazon.

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