The business that can be easily understood
You must choose the business that can be understood by you. When it can be understood, you will be able to identify the business activities and its operation in the company such as how they make a sale or where their payment went.
The business has a favorable long term prospects
This shows that the company will be expanding their businesses such as franchising and continue providing new services that more and more customer will be attracted therefore increased their profit in the long run.
The business has a good management team
It means that the top management such as the CEO, CFO and their employees are able to perform their job with integrity and having good corporate governance towards its stakeholder. It also proves that the company has a good internal control which can prevent the company from fraud.
The business has attractive pricing
This shows that the company is able to increase their price of products without losing market share thus proves that they will have a high profit margin.
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