What is typically included in a financial assessment?

A financial assessment typically focuses on the quantitative aspects of a company's performance, evaluating its financial health and stability. The analysis of financial ratios and cash flows is essential because it provides comprehensive insights into a company’s profitability, efficiency, liquidity, and solvency. Financial ratios like the current ratio, debt-to-equity ratio, and return on equity help stakeholders gauge the financial status and operational effectiveness of the organization over time. Additionally, cash flow analysis enables evaluation of the company's ability to generate cash, sustain operations, and fund growth.

The other options, although relevant in different contexts, do not center on the financial metrics that define a financial assessment. Employee performance reviews pertain to human resources and organizational behavior, market share analysis focuses on competitive positioning rather than direct financial performance, and competitor product evaluation relates more to product management and marketing strategies than financial analysis. Thus, the correct choice emphasizes the core elements that make up a financial assessment, ensuring stakeholders can make informed decisions based on a clear understanding of the company's financial position.