In Regards to Benchmarking,which of the Following Statements Is Incorrect

question 96

Multiple Choice

In regards to benchmarking,which of the following statements is incorrect?

• A) Benchmarking is the practice of comparing a company with other leading companies.
• B) The industry average is not a useful benchmark for evaluating a company.
• C) Providing common-size percentages in a graphical manner highlights differences.
• D) The two main types of benchmarks in financial statement analysis include benchmarking against the industry average and benchmarking against a key competitor.

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Definitions:

IRA

An Individual Retirement Account, a financial tool used in the United States to save for retirement with tax advantages.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are managed by professionals.

Introductions

The initial section of a speech or piece of writing that sets the context and presents the main theme.

Shopping Locations

Specific places where goods and services are sold, such as malls, markets, or online stores.