It Is Easier to Evaluate a fiRm Using Its fiNancial

question 397

Multiple Choice

It is easier to evaluate a firm using its financial statements when the firm:

• A) Is a conglomerate.
• B) Is global in nature.
• C) Uses the same accounting procedures as other firms in its industry.
• D) Has a different fiscal year than other firms in its industry.
• E) Tends to have one-time events such as asset sales and property acquisitions.

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Definitions:

Fourteenth Amendment

An amendment to the United States Constitution granting citizenship to all persons born or naturalized in the U.S. and guaranteeing all citizens equal protection of the laws.

Equal Protection

A legal principle found in the 14th Amendment of the U.S. Constitution that requires states to treat all citizens equally under the law.

Jim Crow Laws

Laws that were enacted in the southern United States to enforce racial segregation and disenfranchise African Americans from the late 19th to mid-20th century.

Racial Segregation

Is the systematic separation of people into racial or ethnic groups in daily life.