Final answer:
Agreeing or disagreeing with Esquire Company's policy of providing financial statements every three years involves considering the importance of transparency and regulatory compliance. Frequent reporting is vital for investor confidence and informed decision-making. Esquire Company's less frequent reporting could lead to increased investment risks and reduced market trust.
Step-by-step explanation:
Whether one agrees or disagrees with the practice of Esquire Company providing financial statements to external users every three years is a matter of regulatory compliance and transparency. Generally, companies are expected to provide financial statements annually for the benefit of shareholders, potential investors, and regulatory bodies. These documents are crucial as they offer insights into a company's financial health and accountability.
In the context of Esquire Company, a three-year interval in reporting may hinder the ability of investors and the market to make informed decisions. It reduces transparency and can potentially increase the cost of capital as investors factor in the higher risk associated with less frequent information. Timely financial reporting is considered a best practice for fostering investor confidence and ensuring the efficient functioning of capital markets.
Even though the company might still be able to attract investment due to general knowledge about its products, revenues, costs, and profits, consistent and regular reporting periods, such as annual reports, are important for broader market participation and for maintaining trust with external stakeholders.