CHAPTER ONE
INTRODUCTION
1.1 Introduction
This research thesis is carried out with partial fulfillment of an MBA in accounting and
finance. This work in divided into 5 chapters, chapter one the introduction to the research
thesis which brings out a brings out the problem the researcher is talking on, the research
questions and clear objectives of the work. Chapter two the literature reviews bringing out
the different theories and concepts in relation to this thesis. Chapter three, the research
methodology which provides an outline how the research will be carried out. Chapter four
data analysis and interpretation. And lastly chapter five, discussions, conclusion and
recommendation. This chapter contains the background of the study which focuses on the
historical background of the organization and the concepts of the study. This sheds lighter
as to what the organization is about and how the concept of financial statements and
investment decisions take part in the organization‟s growth. This is followed by the
problem statement, which highlights the main problem observed by the researcher in the
organization which this report hopes to elaborate and provide possible solutions. We also
have the research questions, objectives and hypothesis, which aim to ease the researcher
focus on the goal and achieve the required results. We then have the significance of the
study, scope of the study and operational definition of terms.

1.2 Background of the study
Vivo consulting ltd is a financial institution that focuses on investments in Private equity
and venture Capital. It has been in existence since 2016, under a bigger office known as
Axian group based in Madagascar whose office in Cameroon is run by Vivo Consulting.
Their major focus is handling family offices, hedge fund and funds in general whose focus
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is on tech enabled products, telecom and business of great potential. The aim of the
organization is to ensure that its investor‟s funds get invested into the right establishments
that will ensure future yields for them. Also, they ensure that the businesses they are
invested in perform well and produce high returns to repay their investments. Given this
objective of the enterprise, one of the major tools they use for this analysis are financial
statements.
The study of financial statements and their impact on investment decisions has been a
subject of interest for both academics and practitioners for many years. The use of financial
statements as a tool for investment decision-making has evolved over time, with various theories and methodologies being developed to understand the relationship between
financial information and investment choices. In the context of Africa making Cameroon as
a headline of study, the financial industry has undergone significant changes in recent years,
with an increasing emphasis on transparency and accountability. This has led to a growing
interest in understanding how financial statements of institutions in Cameroon influence
investment decisions. Financial information appears as a very crucial tool. It guides to know
how the past has been, how the present is, and forecast the future. Information will be like
an order to plan one‟s activities accordingly (Capital Market Authority, 2013). In business,
financial information helps its users predict the amount, time and inevitability of cash flows
for making decisions. Like any language, financial statements are primarily a
communication tool; it is important that one use appropriate, accurate and precise language.
Financial statements in developed countries like United States of America (USA) provide
evidences and facts related to financial institutions and business development. Therefore,
financial analysis objective is to offer evidences related to financial position, the attainment
of expected outcomes and ability of a financial institution that is prominent for customers in