What Is the Main Purpose of Common-Size Financial Statements

question 159

Multiple Choice

What is the main purpose of common-size financial statements?

• A) To remove the bias introduced by increasing revenue
• B) To facilitate comparisons over time
• C) To facilitate comparison between firms of different structure
• D) To facilitate comparison between different-sized firms

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Definitions:

Marketing Channel

A marketing channel consists of the individuals, organizations, and activities necessary to transfer the ownership of goods from the point of production to the point of consumption.

Basic Product

The essential features or the core benefit that a consumer receives from a product, excluding any additional features, branding, or packaging.

Vertical Marketing Systems

Professionally managed and centrally coordinated marketing channels designed to achieve channel economies and maximum marketing impact.

Contractual

Relating to, secured by, or involving an agreement between two or more parties, especially one enforceable by law.