If You Wish to Examine How One Aspect of a Business

question 45

Multiple Choice

If you wish to examine how one aspect of a business is doing relative to other aspects of the business at the current time,you are most likely to use:

• A)time-series analysis.
• B)ratio analysis.
• C)horizontal analysis.
• D)cross-sectional analysis.

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Definitions:

Inelastic

Inelastic refers to a situation in economic terms where the demand or supply for a good or service is relatively unresponsive to changes in price, meaning the quantity demanded or supplied changes by a smaller percentage than the price change.

Perfect Competition

A market structure characterized by an infinite number of buyers and sellers, homogeneous products, perfect information, and no barriers to entry or exit.

Resources Allocation

The process of assigning available resources among various uses in an economy or organization to maximize the efficiency of those resources.

Firms Efficiency

The degree to which a company utilizes its resources effectively to produce goods and services and maximize profit.