Which of the Following Statements Is Correct

question 6

Multiple Choice

Which of the following statements is correct?

• A)A ratio calculation is most relevant in isolation.
• B)One of the advantages of ratio analysis is that it allows companies of different sizes to be compared.
• C)Finding benchmarks for comparison is a straightforward task.
• D)It is always preferable to compare a company's performance to industry-wide ratios rather than to use a competitor's ratios.

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Definitions:

Diets

Regulated eating plans designed for weight loss, medical reasons, or to achieve or maintain a specific health goal.

Strategic Planning

The process of thoughtfully defining a firm’s objectives and developing a method for achieving those objectives.

Objectives

Specific, measurable goals that are set to be achieved within a time frame, serving as guiding principles for initiatives or projects.

Franchising

A contractual arrangement in which the franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits.