Select the Term Below Most Properly Satisfies Each Statement

question 3

Multiple Choice

Select the term below most properly satisfies each statement.
-When using vertical analysis, accounts on the balance sheet should be stated as a percentage of this amount

• A)total assets
• B)horizontal analysis
• C)vertical analysis
• D)net sales

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Definitions:

SWOT Analysis

A strategic planning tool used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats, to gauge internal and external factors affecting its objectives.

External Analysis

The evaluation of factors outside a business that can impact its performance, such as economic trends, competitive landscape, and regulatory environments.

Internal Analysis

The process of examining an organization's strengths, weaknesses, internal resources, and capabilities to improve performance or strategic planning.

Bargaining Power of Buyers

The ability of buyers to negotiate lower prices or better terms with sellers, influenced by factors such as market competition and buyer concentration.